Plosser Opposes More Fed Bond Buying, Sees Small Deflation Risk

Sept. 29 (Bloomberg) -- Federal Reserve Bank of Philadelphia President Charles Plosser said he opposes more monetary expansion by the U.S. central bank in part because he sees “little risk” of deflation.

“Because I see little gain at this point, and some costs, I would prefer not to engage in further asset purchases at this time,” Plosser said in remarks prepared for a speech to the Greater Vineland, New Jersey, Chamber of Commerce today. “Asset purchases in our current economic environment can do little if anything to speed up the return to full employment.”

U.S. central bankers are debating whether more monetary stimulus would help speed up a recovery that hasn’t pushed the jobless rate lower. Consumer confidence slumped this month, and a rebound in home prices cooled. The Federal Open Market Committee said in its Sept. 21 statement that inflation measures are “somewhat below” levels consistent with the Fed’s mandate to achieve stable prices.

The unemployment rate has been stuck above 9 percent since the recession ended in June 2009 -- almost twice the 5 percent rate when the slump began 18 months earlier. The personal consumption expenditures price index, minus food and energy, rose 1.4 percent for the 12 months ending July. That’s below Fed officials’ long-run preference range of 1.7 percent to 2 percent.

http://noir.bloomberg.com/apps/news?pid=20601087&sid=atDWQ___k1AM&pos=5

LOL ! Tell you, all this talk about 1 trillion QE II is just noise. A smart marketing trick made up by FED and Wall Street....

 

That would be big news IF HE ACTUALLY HAD A VOTE NEXT MEETING

 

market is 2005 levels
real estate prices same as 2005
oil is $75/barrel
gold is 1300 same
wages for gov't employees same
healthcare premiums
prices at walmart going up soon. clothing up 100% etc. anything imported from china to double in price. duties and tarriffs.

now what deflation is the fed referring to?
inflation doesn't create jobs.

only deflation is money is cheap at 1% but nobody is lending money at 1% 5 year fix mortgages. lenders would be lending money for free and lose money with inflation as indcated above.. banks are using the money for themselves. to speculate in forex,stocks,oil,gold and commodities since money is free. banks don't have to lend money to anyone.

 

i'm in complete agreement with you. unfortunately, silly is in season.

 

if he's still alive