Philadelphia Federal Reserve Bank President Charles Plosser said today that he does not believe that US monetary policy would be well-served by further accommodation. Additional Fed bond purchases “could lead us down a very treacherous path — one that would be ever more difficult for us to navigate and one that would increase the already substantial risk of higher inflation.”
Plosser also noted what he believes is the biggest threat to further US economic recovery:
The most significant and identifiable risk on the horizon is the potential effects of the continuing sovereign debt crisis in Europe. … [T]he economic slowdown in the euro zone will likely exert a small drag on U.S. exports. And while European financial institutions have so far endured through the financial market turmoil in Europe, we must continue to monitor events to ensure that these troubles do not spill over to U.S. financial institutions.
He also said that he sees the US employment situation improving and thinks that US inflation will remain “moderate” in the near term.
The full text of Plosser’s speech is available here.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.