Fed's Plosser (hawk, FOMC voter and recent dissenter): Main concern is that monetary policy is not reaching to changing data - CNBC interview
- Appropriate policy response would be to move away from zero interest rate policy; Our language is still that we are not moving off that setting for a considerable period of time.
- The longer we wait, the higher the risk of having to raise rates very quickly.
- Inappropriate to have a clear calendar of when rates will go up; Need to be more responsive to incoming data.
- Not wise to make wages the centerpeice of monetary policy; Wages lag inflation