Fed’s Williams: MBS sales could be an option down the road
2022.05.16 17:31
FILE PHOTO: John Williams, chief executive officer of the Federal Reserve Bank of New York, speaks at an event in New York, U.S., November 6, 2019. REUTERS/Carlo Allegri/File Photo
(Reuters) – New York Federal Reserve Bank President John Williams said on Monday selling mortgage-backed securities could be an option for the central bank to consider down the road in its goal to orient its balance sheet largely around holdings of Treasuries.
Williams said MBS sales are not under consideration for the first stages of the balance sheet reduction plan the Fed revealed earlier this month, but said the goal of $35 billion a month in MBS redemptions is a “big number.” Last week Williams said plans to raise interest rates by 50 basis points at the Fed’s next two meetings is sensible, a sentiment he echoed on Monday.
