NY Fed's Potter: FOMC to reduce size of portfolio in a gradual manner

"I am confident that the FOMC plan will reduce the size of the portfolio in a gradual and predictable, 'no surprises' manner," the Federal Reserve Bank of New York's markets chief Simon Potter said in a prepared speech on Wednesday, as per Reuters reports.

Key quotes (via Reuters):

• Fed's balance sheet reduction won't disrupt treasuries, mortgage-backed securities markets
• Fed "cannot and should not prevent" treasuries, MBS from reacting to economic, financial developments as fed shrinks holdings
• There is always risk Fed's balance sheet plan may "unfold differently from expectations"