Fed’s Plosser Says Cost of More Bond Buying Outweighs Benefits
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Federal Reserve Bank of Philadelphia President Charles Plosser said the potential risks involved with another round of large-scale bond buying outweigh the benefits.
“I don’t think it really meets the cost-benefit test right now,” Plosser, who doesn’t have a vote on policy this year, said today in a CNBC interview. “It’s possible they could bring down interest rates somewhat, but we have to remember it’s not that simple given the headwinds that the economy faces.”