NEW YORK – Calling the Federal Open Market Committee’s decision “inappropriate policy at an inappropriate time," and its statement on the economy “excessively negative,” Federal Reserve Bank of Philadelphia President Charles I. Plosser said he would have liked to wait until September and watch data before making such a decision.
Although much can change in two to three years, Plosser said he believes there will be rate hikes before 2013.
Additionally, setting a date for the extended period was “poorly designed,” he said in an interview on Bloomberg radio.
Monetary policy is not always the answer to all economic ill and too much is expected from the Fed and monetary policy, Plosser added.
He said patience is needed and the Fed should wait until the economic data is clearer before making decisions.
