US plans securities sale
The US central bank is a step further towards gradually selling some of its $1.25 trillion portfolio of mortgage securities. Ben Bernanke at a House hearing yesterday said: “I anticipate that at some point we will, in fact, have a gradual sales process.” Bernanke’s stand on the issue is important to millions of US homeowners and many investors because sales of the securities could push down their prices and push up mortgage rates. Bernanke also said interest rates would remain low.