The Federal Open Market Committee "missed an excellent opportunity" when it failed to taper its asset purchases at its most recent meeting, and this lack of action "undermines the credibility of its own forward guidance," Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser said Tuesday.

"To delay tapering of our current asset purchase scheme without clear and significant departures from prior guidelines suggested the FOMC was changing the goalposts and deviating from June's forward guidance," he told the Greater Johnstown Cambria County Chamber of Commerce in Pennsylvania, according to prepared text of his speech, released by the Fed. "This undermines the credibility of the Committee and reduces the effectiveness of forward guidance as a policy tool."

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