JACKSON HOLE, Wyo. — Federal Reserve bank of Philadelphia president Charles Plosser's Federal Open Market Committee dissent was partly because he thought the statement was too pessimistic as well as because he believes keeping rates low into 2013 is inappropriate, he said in a CNBC interview Friday.
Plosser said that while he marked down his 2011 outlook, his 2012 outlook remained pretty much the same.
Regarding any QE 2.5 or 3, Plosser said he does not think additional quantative easing would be much help. He said the Fed should consider additional accommodation if the markets become "dysfunctional" or if deflation returns as a real threat.
Overall, he said the U.S. economy is still struggling to ramp down an over-investment in the financial sector.
