Fed's Plosser: Funds rate should hit 2.5% in year

Discussion in 'Wall St. News' started by ASusilovic, Mar 25, 2011.

  1. 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.

  2. Has he gotten approval from GS yet? :confused: :D
  3. ha
  4. Actually, Jan Hatzius was running our of ideas...:cool:
  5. pitcher


    I am all for the hick. It should be 5%.
  6. 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.
  7. Tsing Tao

    Tsing Tao

    the Chairsatan will never approve of this.