Increase in main interest rate hinges on state of economy says Plosser

  • FOMC statement doesn;t reflect improved economy
  • Inflation can rise even without growth in wages
  • Sees wages as lagging indicator of inflation
  • Would be nervous with zero rate and 6% unemployment
  • Health of economy is improving
  • Doesn’t expect huge rebound in labour participation
  • Says his jobless estimates are consistently below FOMC’s
  • Fed getting closer on our goals

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