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Talk of unwinding QE puts Fed's mortgage bond stash in focus

As Fed seeks to reduce its US$1.75 trillion hoard of mortgage-backed securities, knock-on effects could hurt

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The surge in mortgage rates is already putting a dent in housing demand. Sales of previously owned homes fell more than forecast in December, even as full-year figures were the strongest in a decade.

New York

ALMOST a decade after it all began, the Federal Reserve is finally talking about unwinding its grand experiment in monetary policy.

And when it happens, the knock-on effects in the bond market could pose a threat to the US housing recovery.

Just how big is hard to

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