DALLAS, Oct 3 (Reuters) - When the time comes for theFederal Reserve to reduce its massive balance sheet, one of thebig worries is the potential volatility and instability thatparing those assets could bring to financial markets, a top Fedofficial said on Thursday.
"When you are on the buy side things look great," Dallas FedPresident Richard Fisher said at a conference on uncertainty atthe regional Fed bank. "When you are on the sell side, when weget to that point, things look different."
The Fed's bond-buying program has swollen the central bank'sbalance sheet to more than $3.5 trillion. Fisher, who hasopposed the bond-buying, said that he and his colleagues feel"angst" at size of the balance sheet and the potentialchallenges when it comes time for the Fed to reduce it.
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