Plosser sees no need for more Fed easing -Bloomberg TV

WASHINGTON, July 26 (BestGrowthStock) Philadelphia Federal Reserve Bank President
Charles Plosser said on Monday the U.S. economy does not need further monetary
stimulus from the U.S. central bank.

Plosser told Bloomberg television he would like to wait for the “noise” that
he says has affected recent data to pass before making further judgment on the
likely path of economic growth.

Fears of a fresh downturn in the U.S. economy have sparked speculation that
the Fed might need to do more to support growth, even with official interest
rates already at zero. But Plosser was skeptical.

“I don’t think there is any role for the Fed, at least in the near term,” he
was quoted as saying. “Of course, things could change, the economy could take a
much worse path than I think it is. But if it did, we have ammunition to act if
we want to.”

Plosser, generally viewed as an inflation hawk, said factors like the
expiration of the home buyer tax credit and worries about Europe’s debt may
have skewed the numbers in recent weeks. He dismissed concerns about deflation,
citing the Fed’s already much expanded credit to the banking sector.

“I’m waiting for some of the noisiness in the data to sort of clear up over
the course of the rest of the summer and early into the fall to get a good
sense of where the underlying trend of the economy is. I do not want to be
taken aback too much by just month-to-month changes,” he said in excerpts of
the interview provided to media.

“I think as we go through, we’ll see confidence return, and a little more
assurance that we’ll get through this and when that happens, the consumer will
come back and businesses will begin investing again.”
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(Reporting by Washington Economics Desk)

Plosser sees no need for more Fed easing -Bloomberg TV