Plosser says no mas for now
By Peter Boockvar - September 29th, 2010, 1:14PM
Non voting Fed member Charles Plosser in a speech on the economy is saying, “Because I see little gain at this point, and some costs, I would prefer not to engage in further asset purchases at this time…Asset purchases in our current economic environment can do little if anything to speed up the return to full employment.” If one thing is for certain, the debate in the Fed leading into the Nov FOMC meeting will be heated over the decision whether to continue to push the envelope with monetary policy. While Plosser’s comments are welcome from my point of view, the voting members have a much more dovish slant.
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September 29th, 2010 at 3:24 pm
Plosser’s right to point out that he sees “little gain at the point … in further asset purchases”. On the other hand, the Fed has a dual mandate to promote price stability and full employment, a mandate that they are failing at on both accounts. It’s hard to argue that the Fed should stand pat and do nothing given this failure.
September 29th, 2010 at 6:07 pm
[...] be heated over the decision whether to continue to push the envelope with monetary policy,” says Peter Boockvar, a Miller Tabak equity strategist. “While Plosser’s comments are welcome [...]