US could face debt crisis over Fed decision to halt agency MBS purchases

The US's fledging recovery from recession could be jeopardised by the Federal Reserve's plans to cease purchasing government-sponsored enterprise (GSE) securities from the end of March, warned a speaker at the Chicago Board Options Exchange risk management conference in Naples, Florida on Monday.

Benn Steil, director of international economics at the Council on Foreign Relations, said his analysis suggests entities that purchased US government debt in 2009 might cease to do so once the US centra