"One way you keep a stable dollar is to keep inflation rates low," Plosser said, referring to the policy mandate of the central bank.
Plosser's comments came in response to audience questions following a speech he gave in Philadelphia before the World Affairs Council. In his formal remarks the official said the Fed would need to normalize its balance sheet "sooner rather than later" in large part by selling parts of its extensive holdings of mortgage securities. Plosser, who also noted a "modest" economic recovery was underway, said the Fed should move back toward conducting rate policy via buying and selling of Treasurys alone. The official, in a nod to the discomfort many have felt with the Fed's bailouts, also said emergency lending powers now held by the central bank should move to the Treasury.
those who can, do. those who cant, talk about those who can
Bought yesterday, close and reverse today.