Fed's Plosser: Generally in favor of recommendations from Mester on the 'dots plot' of forecasts; inflation will always fluctuate and the Fed must see through short term movements
- Additional QE would not solve inflation issues
- Gas prices expected to drive even lower inflation in the short term
- Reminder: Mester, in her comments last week indicated that dots should have more information, including the full range of forecasts from a specific policymaker without identifying the policymaker by name. Should also adjust the dots (summary of economic projections, SEPs) with the range of uncertainty about the prediction. Also should highlight the 'consensus view' in comparison to outlying views.