Philadelphia Fed's Plosser Admits The Fed is Totally Useless
Ask Fifth Third about cash drops, they can tell you all about it
OK fine, saying "I don’t think there is any role for the Fed at least in the near term" isn't the same as saying "The Fed is totally useless" but just work with me on this one, it's a rough translation from Fedspeak.
One thing is clear: no stimulus for Chuck.
Federal Reserve Bank of Philadelphia President Charles Plosser said he sees no need now for more monetary stimulus while noting fundamental strength in the economy.
“I think there is underlying strength there that is still there,” Plosser said today in an interview with Bloomberg Television in Washington.
“I haven’t changed my forecast very much,” Plosser said. “I’m waiting for some of the noisiness in the data to sort of clear up over the course of the rest of the summer and early into the fall,” he said, referring to recent data on the economy influenced by the end of the housing tax credit or temporary hiring for the U.S. census.
“I don’t think there is any role for the Fed at least in the near term,” Plosser said of calls for further policy easing. “Of course things could change. The economy could take a much worse path.”
Know what's really funny about that statement? There's nothing left for the Fed to ease unless Bernanke really wants to get bold and gasses up the helicopter for a few midnight cash drops. Expressing faith in the economic outlook and being out of ammo and/or impotent are two completely different things. Surely Chuck knows this.