Fed Chairman Ben Bernanke
In February, Bloomberg reported that members of the Treasury Borrowing Advisory Committee (TBAC) – made up of high-level executives at Wall Street’s biggest investment banks and asset managers – warned in a quarterly TBAC meeting with Federal Reserve Chairman Ben Bernanke that farmland, junk bonds, and mortgage real estate investment trusts were looking bubbly.
According to the minutes, Bloomberg reporters Craig Torres and Joshua Zumbrun write that the TBAC opposed the Fed’s third round of quantitative easing – this time open-ended, unlike the previous two iterations – when it was announced in September:
The advisory council opposed continued Fed accommodation on Sept. 14, a day after the conclusion of the FOMC’s two-day meeting Sept. 12-13. The Fed after that gathering announced a third round of bond buying with purchases of $40 billion per month of mortgage-backed securities.