The Federal Open Market Committee should define the amount of assets it will purchase under QE3 and stop when that limit is reached, Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser said Monday.

"We need to define simple, clear dimensions to 'right-size' the [asset-purchase] program," Plosser told the Risk Management Association, according to prepared text released by the Fed. "This will reduce policy uncertainty and move the economy forward. My preference would be for the FOMC to announce a fixed amount for QE3, just as we did for the two prior rounds of asset purchases. When we reach that amount, we should stop the asset purchases, and then reassess the state of the economy to determine if further action would be beneficial. At that point, monetary policy would still be highly accommodative."

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