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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