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Fed should focus on mortgage buys, sell Treasuries: study

JACKSON HOLE, Wyoming (Reuters) - The Federal Reserve should concentrate its unconventional monetary stimulus on mortgage asset purchases, according to a new study released on Friday, ditching Treasury bond buys which the authors say have not had much of an effect. Presented at the Kansas City Fed's annual Jackson Hole conference, the paper argues rather controversially that the central bank should begin its exit strategy by selling Treasuries, something that is hard to conceive given the recent speedy selloff in government bonds.

WRAPUP 2-Fed officials warn about doing too much, or too little

* "A sense of urgency is appropriate," Lockhart says * George voices worries about exit from easy-money policy * Plosser says thresholds are step in right direction By Paul Day and Ann Saphir MADRID/STANFORD, Calif. Feb 12 (Reuters) - The tug-of-war over U.S. monetary policy was on full display on Tuesday as one top Federal Reserve official warned against being too timid, two others focused on the risks of being too bold, and a fourth said the Fed's policy was too vague.
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