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Home » Store » Taxable » Fed Chairman Reiterates the Need for Caps on GSE MBS Portfolios, Outlines Legislative Plan

Fed Chairman Reiterates the Need for Caps on GSE MBS Portfolios, Outlines Legislative Plan

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Federal Reserve Chairman Alan Greenspan took his campaign to dramatically reduce the MBS holdings of Fannie Mae and Freddie Mac on the road this week, arguing in a new speech that any meaningful legislation reforming the two government-sponsored enterprises must include a cap on their portfolios. In addition, the Fed chairman addressed the very contentious issue of how the government might slash the MBS holdings of Fannie and Freddie without disrupting the housing markets by…
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