Feds Plosser did not back 2014 pledge on interest rates

Written February 1, 2012 at 8:48 AM EST by  
  • Policy should not hinge on a calendar date
  • Inflation to be monitored carefully due to very accomodative policy

I personally have to agree with Plosser.  Setting a date every month is simply painting yourself in a corner.  There is a boat load of stimulus and if the economy does pick up, inflation could jump rather quickly.  The Fed will likely be late to the game as they worry about their credibility from their date.

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