The Fed has already squashed its most tangible tool for helping the economy

“America’s largest mortgage maker, Wells Fargo, is cutting some 2,300 mortgage production employees, Bloomberg reports. Why? Higher interest rates. Since the US Federal Reserve started talking up the taper back in May, mortgage rates—which are closely tied to yields on US government bonds—have surged. As rates have gone up, refinancing activity collapsed, killing off a boomlet that has been one of the most tangible bits of evidence that the Fed is actually helping the economy. ”

 

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