Philly Fed's Plosser opposes QE3, worries it will be ineffective
The head of the regional Federal Reserve bank expressed his concerns about the central bank's latest efforts to stimulate the economy in a speech in Philadelphia Tuesday.
Philly Fed's Plosser opposes QE3, worries it will be ineffective
Mike Armstrong, Inquirer Columnist
Federal Reserve Bank of Philadelphia president Charles Plosser said in a speech Tuesday that he does not think that monetary policy can "do much to speed up the slow progress" in the labor market.
According to prepared remarks for a speech before the CFA Society of Philadelphia and Bond Club of Philadelphia, Plosser discussed the Fed's latest round of stimulus, known as QE3, and said he opposed the actions taken by the Federal Open Market Committee earlier this month.
(Plosser is not a voting member of the FOMC in 2012.)
"I opposed the Committee's actions in September because I believe that increasing monetary policy accommodation is neither appropriate nor likely to be effective in the current environment," he said.
According to his speech, Plosser worries that should QE3 prove ineffective in improving the labor market the Fed will lose credibility with the public. "I do not think it prudent to risk that hard-won credibility," he said.
What an awful comment. He is worried about credibility with the public. . The FED needs to decide what will help and try it. They might get it wrong but if it is their best effort than that is all that can be asked. Not trying your best because of worry about public opinion is absurd. This man needs to be replaced. However I do agree with him that it is unlikely to work. Interest rates are very low. Lowering a bit more is not needed but the promise of lower rates might cause people and business' to hold off thus exacerbating the problem.— algalli- Printing money. Good "policy". Banks sitting on heaps of cash, the stock market at an all-time high, and corporate profits at record levels. So how's that helping the employment situation? Amerikans are such gullible fools.— CiceroSpuriousDeodatusTheSecond
- QE3 is an ocean liner. You have to use lower-case letters or a roman numeral to differentiate. I'm surprised Cunard isn't suing, unless they think it is good publicity.— Zindorf
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980.
Reach Mike at marmstrong@phillynews.com.
