Fed's role in Fannie, Freddie plan limited: Plosser (Reuters)

KING OF PRUSSIA, Penn. (Reuters) - The Federal Reserve has a limited role in a government plan to provide financial support for ailing mortgage finance firms Fannie Mae (FNM.N) and Freddie Mac (FRE.N), Philadelphia Federal Reserve President Charles Plosser said on Tuesday.

"We were not the lead instigators" in the plan, Plosser told reporters after a speech to local business leaders. "The Fed is not intentionally seeking to expand its powers."

Plosser also dismissed views that monetary policy would be influenced by the upcoming presidential election. Some see that as a reason for the Fed to refrain from raising rates this year.

"I don't think politics play a role in this at all," Plosser said.

Plosser is a voting member this year on the Fed's interest rate-setting Federal Open Market Committee and is known to be one of the Fed's more hawkish members.

(Reporting by Pedro Nicolaci da Costa; Editing by James Dalgleish)