WASHINGTON (MarketWatch) - The Federal Reserve should hike interest rates from current range near zero to 2.5% within a year under a plan unveiled Friday by Charles Plosser, the president of the Philadelphia Federal Reserve Bank. Plosser did not give a specific time when this exit would begin but said it would have to start in the "not-too-distant future." In a speech to economists from the monetarist school on Friday, Plosser laid out an aggressive plan where the Fed would sell $125 billion of assets for each 25 basis point increase in the funds rate. A slower approach could last 18 months rather than a year, he said. This would require only $67 billion of conditional sales between meetings but the funds rate would rise to 3.5%. Plosser, a voting FOMC member this year, said he did not think this strategy would disrupt markets. http://www.marketwatch.com/story/feds-plosser-funds-rate-should-hit-25-in-year-2011-03-25
If I am not wrong, USD toilet paper should strenghten with time IF FED is serious about raising rates, but given uncle BEN´s "historic approach" and unprecedented measures, I wouldn´t believe ANY WORD coming from helicopter BEN.