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Plosser Says Rates Should Rise Before 2014 FOMC Target Date

Philly Fed President Charles Plosser smiles at the thought of a guacamole salsa cheesesteak
Philly Fed President Charles Plosser smiles at the thought of a guacamole salsa cheesesteak. He also denied that he is James Howard Kunstler's long lost twin.

Philly Fed President Charles Plosser said in a speech in San Diego:

“You may know that I dissented from the FOMC decisions in August and September because it was not clear to me that increasing monetary policy accommodation was appropriate then. After all, inflation was higher and unemployment was lower relative to the previous year, as we have been discussing. Since that time, unemployment has decreased further, and inflation is above target. While I believe monetary accommodation is still called for, in the absence of some shock that derails the recovery, we may well need to begin to gradually scale back the level of accommodation well before the end of 2014.”

via Speech: A Perspective on the Economic Outlook (May 1, 2012) – Philadelphia Fed.

After the speech the crowd dined on a lunch of soft pretzels and guacamole salsa cheese steak with onions, on Italian rolls flown in from Philadelphia for the occasion.

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