May 5, 2017 / 5:56 PM / 2 years ago

Fed shedding MBS will not hurt Fannie, Freddie -Williams

NEW YORK, May 5 (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.

“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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