What a Kevin Warsh-Led Fed Could Mean for Mortgage REITs AGNC and Annaly Capital
The new Fed chief could be a headwind for AGNC and Annaly in the near term, but a positive over the longer term.
Overview
Kevin Warsh was recently installed as the head of the Federal Reserve. Although he was a loud proponent of cutting rates not too long ago, economic conditions have changed. The first Federal Reserve meeting of his tenure ended with no change to rates, with the target range remaining at 3.5% to 3.75%.
That alone is an important piece of information for mortgage real estate investment trusts (REITs) like Annaly Capital (NYSE: NLY) and AGNC Investment (NASDAQ: AGNC). But it isn't the only takeaway from the meeting you need to know about if you own these high-yield stocks, or are considering buying them.
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Originally published at www.fool.com.