WASHINGTON — Making the case for a systematic approach to monetary policy, Philadelphia Federal Reserve Bank President Charles Plosser said Tuesday the Fed's move to a threshold form of forward guidance was only a "step in the right direction," warning that it must be "humble" about the expected benefits of such guidance in the real imperfect world.

Referring to the policy-setting Federal Open Market Committee's recent statements, Plosser said, "Although my FOMC colleagues are not ready to choose a particular policy rule or reaction function to govern policy, we continue to explore the efficacy of monetary policy rules as guides to policy."

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