Summary: Philadelphia Federal Reserve President Charles Plosser said Thursday that the FOMC's current policy of leaving interest rates frozen while it assesses U.S. economic growth and inflation may not be sufficient to address the country's long-term economic interests. Plosser told the CFA Society of Philadelphia, "There remains some risk that policy is not yet firm enough to ensure a return to price stability over a reasonable time horizon." U.S. government bond prices continued their losses on Thursday, reacting to Plosser's remarks, with two-year notes trading down 4/32 to yield 4.66 percent. Plosser is not yet a voting member of the FOMC -- he will have to wait till 2008 before he can backup his words with his first vote.
Related links: Full article • ECB Raises Rates, Dollar Doesn't Weaken • Bernanke Comments Reinforce Stable Interest Rates View • Take the FOMC's View With a Grain of Salt • Will the Dollar Hold its Ground?
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