WASHINGTON — Federal Reserve Bank of Philadelphia president Charles Plosser Friday once again took aim, albeit indirectly, at the manner of the Fed's forward guidance regarding future monetary policy, arguing that they will not have the desired effect if the public believes the central bank's commitment is "incomplete."

Plosser also warned of the moral hazard that occurs when a central bank has no credibility, as it may induce excessive risk-taking.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.