The Federal Reserve could easily purchase MBS or other assets with the cash it gets when existing MBS holdings roll off the government's books, but late Friday questions about whether this would be an effective means of economic stimulus persisted.

"One of the easiest things to do is just to reinvest," said Andy Busch, global currency and public policy strategist at BMO Capital Markets, in response to a question from this publication during a media conference call on the outlook for fixed income markets.

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