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Fed shedding MBS will not hurt Fannie, Freddie - Williams
May 5, 2017 / 6:07 PM / 7 months ago

Fed shedding MBS will not hurt Fannie, Freddie - Williams

NEW YORK (Reuters) - The Federal Reserve’s plan to eventually shed some of its $4.5 trillion in mortgage-backed and Treasury-backed securities will not imperil the stability and debt of Fannie Mae and Freddie Mac, a top Fed policymaker said on Friday.

John Williams, president of the Federal Reserve Bank of San Francisco, speaks during an interview with Reuters in San Francisco, California December 18, 2015. REUTERS/Stephen Lam

“I‘m not really worried that will endanger” the two government-sponsored enterprises, said San Francisco Fed President John Williams when asked about a possible shutdown of the federal government, which back-stops those mortgage giants.

He added that the bond portfolio will eventually shrink to a level “significantly” lower than today.

Reporting by Jonathan Spicer; Editing by Chizu Nomiyama

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