NEW YORK (Reuters) - It will be easy from an operational standpoint for the Federal Reserve to sell the assets it has bought when the time comes, the U.S. central bank official responsible for carrying out the quantitative easing program said on Wednesday.
“I think that if we are directed to sell, we’ll be able to sell,” Simon Potter, head of the New York Fed’s open market operations, told members of the Forecasters Club of New York.
From an operational aspect it is “very easy to do”, Potter said, noting the Fed will minimize any market disruptions from the exit of its unprecedented stimulus program.
Potter is responsible for running the quantitative easing program through which the Federal Reserve is buying $45 billion in Treasuries and $40 billion in mortgage-backed securities a month in an effort to spur investment and hiring and to boost broader economic growth.
Worries have grown that this third round of quantitative easing, known as QE3, could disrupt the normal functioning of markets.
Potter was responding to questions from the audience following a speech in which he reiterated there has been little evidence so far that the Fed’s purchases have disrupted markets.
Reporting by Leah Schnurr; Editing by Chizu Nomiyama