Jeffery Lacker, president of the Federal Reserve Bank in Richmond, Va., said yesterday that the Federal Reserve might not need to buy the full amount ($1.25 trillion) of agency MBS it is authorized under the agency MBS program.

Wells Fargo analysts noted in an Aug 18 report that foreign buyers are still increasing their net agency debt purchases, which includes MBS. At that time, they said that as foreign central bank purchases rise, the Federal Reserve will most probably lessen its purchases.

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