May 16 (Reuters) – New York Federal Reserve Chairman John Williams said on Monday that selling off mortgage-backed securities (MBS) might be an option the U.S. central bank might consider with a view to favoring Treasury bills in the composition of its balance sheet.
John Williams clarified that the sale of MBS was not on the agenda for the first stages of the Fed’s balance sheet reduction plan.
The central bank announced at the beginning of the month that it would begin in June to reduce its balance sheet, which represents nearly 9,000 billion dollars (8,530 billion euros) due to the massive purchases of bonds made in recent years to maintain interest rates. down and support the economy.
This reduction in the balance sheet will be capped at 47.5 billion dollars per month in June, July and August, then from September 95 billion per month (60 billion in Treasuries and 35 billion in MBS).
(Report by Dan Burns, French version of Laetitia Volga, by Kate Entringer)
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