The Treasury Should Revive the Snow Plan for Limiting GSE Debt Issuance
Cato Institute, Feb. 6, 2017–Mark A. Calabria
Author says Treasury Secretary designate Steven Mnuchin should strongly consider reviving a plan developed by his predecessor, John Snow. That plan would take advantage of the Treasury’s authority to place limits on Fannie and Freddie’s debt issuance to reduce those agencies’ indebtedness. The reduction can and should be done in a controlled manner that could be easily reversed if necessary.
