Plosser suggests rate hikes may need to come sooner

|By:, SA News Editor

Not disappointing his hawkish fans, Philadelphia Fed boss Charles Plosser (an FOMC voter this year) muses the Fed may have to speed up its removal of monetary accommodation and get on with actual tightening.

"Reducing the pace of asset purchases in measured steps is moving in the right direction, but the pace may leave us behind the curve if the economy continues to play out according to FOMC forecasts ... If the economy continues to improve ... we could find ourselves still trying to increase accommodation in an environment in which history suggests that policy should perhaps be moving in the opposite direction."