Plosser Says Fed Fiscal Policy Role Raises Inflation Risk

Federal Reserve Bank of Philadelphia President Charles Plosser said the central bank has undertaken actions that should be conducted by the U.S. Treasury and risk fueling public expectations that inflation will accelerate.

“Unfortunately, from my perspective, the Fed and other central banks have already embarked on a path that has blurred the distinction between monetary policy and fiscal policy,” Plosser said today in a speech in Philadelphia.