Plosser Says Fed May Need to Begin Exit From Stimulus in 2011

Federal Reserve Bank of Philadelphia President Charles Plosser said the Fed may need to begin its exit from record monetary stimulus as soon as this year should forecasts on economic growth prove to be accurate.

“If you took most economists’ forecasts looking through the end of this year and into next year,” and “if that turns out to be the right forecast,” then the Fed “would have to act,” Plosser said. Such a policy move may come this year, he said.