- Notes that job growth is moderate
- Comfortable with recent market reaction to growing talk of slowing QE
- Higher treasury yields not a bad thing
- FOMC minutes show growing talk among policy makers of slowing bond buys but unclear when that might happen
- Fed digging deeper hole and risking credibility by not reducing QE now
- Not yet reached consensus of initial size of QE taper
- Fed first needs to decide to taper, then pick increment, then choose assets
- June meeting to early to adjust longer term exit strategy for reducing balance sheet.
I’m guessing Mr Plosser wants out of QE then.
Comments coming out on Reuters.
