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Title: Fed's Plosser: Expects Growth To Continue, Amid More Job Gains
Source:
DOW JONES NEWSWIRES
URL Source: http://www.nasdaq.com/article/feds- ... -more-job-gains-20120503-01794
Published: May 3, 2012
Author: Michael S. Derby
Post Date: 2012-05-03 14:35:22 by Brian S
Keywords: None
Views: 1140
Comments: 1
SANTA BARBARA, Calif. -(Dow Jones)- A veteran Federal Reserve official offered on Thursday an upbeat view of the economy's future path. Describing himself in the "more optimistic camp" relative to the rest of the central bankers' outlook, Federal Reserve Bank of Philadelphia President Charles Plosser said in the text of a speech to be delivered before the University of California Santa Barbara Economic Forecast Project 2012 that he expects continued growth, contained inflation, and job gains. Plosser said he expect the economy to expand by 3% this year and next, and he said he expects "inflation will hover near or slightly above 2% over much of the period." "My optimism is most evident in my projections for the unemployment rate," Plosser said. "I believe that it will continue to drift down gradually, reaching 7.8% by the end of this year and near 7% by the end of 2013," the official said. Plosser is not currently a voting member of the monetary policy setting Federal Open Market Committee. That body met last week and maintained the Fed's commitment to keep interest rates very low until late 2014, while continuing forward with a program to change the average maturity of its massive balance sheet. Plosser has been a regular critic of many of the actions taken by the Fed over recent months, but he did not say anything about his preferred path for policy in his prepared remarks. Plosser spent much of his speech discussing the recent move by the Fed to disclose greater information about policymakers' outlook for monetary policy, as well as adopting a 2% inflation target. The interest rate forecasts have been controversial, because they have suggested less desire to keep interest rates low compared to the official outlook of the FOMC. "The better the public and the markets understand how policy is likely to be adjusted as the economy changes, the more predictable policy becomes, which promotes price stability and better economic outcomes," Plosser said. The official said the Fed's forecasts have value because "as views of appropriate policy in the [Fed forecasts] evolve over time as economic and financial conditions change, the public will be able to draw better inferences about the relation between current economic conditions, the economic outlook, and appropriate policy." He added, "this, then, informs the public about how policy is likely to react in the future to changes in the economy." Plosser once again said there's little the Fed can do about long term employment trends, but it can control inflation. He explained while keeping prices low is, over the long term, a boon for job creation, the Fed can struggle to promote both of these objectives in the short run. Plosser said it's then the Fed would have to pursue a "balanced approach" to keeping prices low and aiding job creation.
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#1. To: Brian S (#0)
LoonyMing: I brandish my ignorance like a crucifix at vampires. 'It's now very common to hear people say, "I'm rather offended by that", as if that gives them certain rights. It's no more than a whine. It has no meaning, it has no purpose, it has no reason to be respected as a phrase. "I'm offended by that." Well, so fucking what?' —Stephen Fry
Fed's Plosser: Expects Growth To Continue, Amid More Job Gains
The economy is wonderful!
Re-elect Obama, he'll pay your rent!
A chicken in every pot!
-Baghdad Bri-bri-
Translation: IGNORANCE IS STRENGTH
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