Philly Fed's Plosser opposes QE3, worries it will be ineffective

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.