Speaking to the limits of monetary policy, Federal Reserve Bank of Philadelphia President and Chief Executive Officer Charles I. Plosser warned of "significant risks" to the Fed's latest easing and reiterated that the move was "neither appropriate nor likely to be very effective in the current environment."

"Every monetary policy action has costs and benefits, and my assessment is that the potential costs and risks associated with these actions outweigh the potential benefits," he told the Southern Chester County Chamber of Commerce, according to prepared text of his speech, released by the Fed.

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