Philly Fed President adds Momentum to Scale Back QE

Charles Plosser is not a voting member in the Federal Open Committee this year is adding his voice to Dallas Fed President Fisher.

A second Federal Reserve policymaker is calling on the U.S. central bank to begin tapering the amount of bonds it is buying.

Philadelphia Fed President Charles Plosser said on Wednesday the benefits of the so-called quantitative easing program, which snaps up $85 billion in assets per month to promote investment and economic growth, are “meager” and outweighed by the potential costs of such aggressive policy easing.

The comments echo those last week of Richard Fisher of the Dallas Fed, a fellow inflation hawk at the central bank, and could up the ante as the Fed’s 19 policymakers debate the effectiveness of the asset purchases at a meeting March 19-20.

“I would like the FOMC to begin to taper these purchases with an aim toward ending them before the end of the year,” Plosser told an economic development conference in this small southern Pennsylvania city.

via Reuters

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