“If the growth rate of the economy continues to strengthen and looks sustainable, then I am going to be looking for the Fed to react to that,” Plosser said today in an interview on Bloomberg Radio’s “The Hays Advantage,” with Kathleen Hays. “That may be to cut back on the degree of accommodation in a gradual way. One way would be to begin stopping some of the purchases or slowing them down.”
Plosser, 62, who votes on monetary policy next year, said he might have dissented from the Fed’s affirmation last week of a plan to buy $600 billion in Treasuries, asserting the purchases may spark inflation and damage the central bank’s credibility.” Read more.
“Plosser Says Fed May Need to Slow Purchase of Bonds”
Steve Matthews and Kathleen Hays
Businessweek, December 22, 2010.
Image by bulldogza / FreeDigitalPhotos.net.