Fed’s Plosser Says Time to Tighten Policy ‘Not Too Distant’

Federal Reserve Bank of Philadelphia President Charles Plosser said the U.S. economic recovery is nearing a point where the central bank should begin pulling back record stimulus.

“If the economy continues to make progress, then monetary policy will need to exit from its extraordinary accommodation in the not-too-distant future,” Plosser said today in a speech in Aventura, Florida. “While my expectation is that oil-price increases will level off and that the currently elevated inflation measures will reverse, the risks to the inflation outlook are tilted to the upside,” requiring that the Fed have a plan for tightening, he said.