Philly Fedhead Plosser: Yeah, Um, I'm Concerned About Inflation. Later.
I'm starting to think Chuck has been hanging out with Janet Yellen a little too much these days.
The U.S. economy has improved, but a number of risks to growth remain and there is no near-term inflation threat, a top Fed official said on Thursday.
"We're in much better shape than six months ago, but that does not mean everything is hunky-dory," Philadelphia Federal Reserve Bank president Charles Plosser told Market News in an interview.
Plosser, who is not a voter on the Fed's policy-setting committee this year, said that there are "still issues" facing the financial system, and that the ailing commercial real estate market is a concern.
Plosser, who is seen as one of the most hawkish Fed officials on inflation, reiterated he was "not worried about inflation in the near-term; my worries about inflation are in the intermediate to long-term."
The Fed, the U.S. central bank, cut benchmark interest rates to near zero last December and has said it intends to keep them there for "an extended period." The Fed also put in place a number of emergency programs, including the buying of mortgage-related debt and Treasuries.
Plosser told Market News the timing and pace of eventual policy tightening will depend on the economy.
"It's contingent on the path of the economy and of inflation ... It's hard to predict now what that may look like," he said.
Blah blah blah. These guys have no idea what they're going to do and it'd be totally hilarious to watch if it weren't for the fact that I get paid in dollars and need them for things like, oh, food and stuff. Fuck it.