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Plosser worries US Fed could face losses on assets

Thursday, 11 Oct 2012 | 1:32 PM ET

AVONDALE, Penn., Oct 11 (Reuters) - When the U.S. Federal Reserve eventually begins to sell some of the assets it has accumulated over the last few years it risks logging losses if longer-term interest rates are rising, a top central bank official said on Thursday.

Philadelphia Fed President Charles Plosser said there is a political risk if the central bank ends up selling the longer maturity assets in its portfolio at a loss.

(Reporting by Jonathan Spicer; Editing by Leslie Adler)

((jonathan.spicer@thomsonreuters.com)(+1 646 223 6253)(Reuters Messaging: jonathan.spicer.reuters.com@reuters.net))

Keywords: USA FED/PLOSSER