Plosser Says Fed Faces Troubling Credibility Problem on Rates

  • Fed finds reasons not to act: former Philadelphia Fed chief
  • Investors see roughly 50% probability of rate move by December

Former Fed President Plosser Sees No Real Fed Strategy

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The Federal Reserve is creating a credibility problem for itself, according to Charles Plosser, former president of the Federal Reserve Bank of Philadelphia.

Policy makers failed to fully explain their decision to keep their benchmark rate in a range of 0.25 percent to 0.5 percent this month and are struggling to communicate with financial markets, Plosser said in an interview on Bloomberg Television on Wednesday.