AGNC Investment Reports Stable Book Value, but Are Rough Waters Ahead?
The U.S. economy has been struggling to deal with an unusually high level of inflation, which is something that hasn't been an issue for decades. If anything, the Federal Reserve has been unhappy because inflation has been too low for too long in the past.
The latest inflation bout has been blamed on supply chain issues, product shortages, labor shortages, and rising wage growth, and the Fed is being forced to take action to address the problem. To address the coronavirus pandemic the Fed ramped up the purchase of Treasuries and mortgage-backed securities. To address rising inflation, the Fed recently announced plans to begin tapering its purchase of these assets.
This move could potentially mean bad things for agency-mortgage investors like AGNC Investment (NASDAQ: AGNC).
Source Fool.com
