Fed's Plosser (hawk, FOMC voter): Current policy guidance may be too passive given economic recovery, to be above-trend growth for the remainder of 2014
- There is plenty of easy money sloshing around the economy to hit the 2% inflation target. Expects inflation to stabilize around 2% in 2015.
- Rule-based monetary policy models suggest that rates should increase next quarter.
- Fed may need to adjust its communications soon, rule-based policy would drive more effective communication.
- Fed could publish periodic monetary policy reports to the public.
- Dot chart are not an FOMC forecast, do not represent policymakers' views on appropriate policies.