FED’s Plosser: Ultimately, Rates Must Rise; But Timed for Market Stability
Philly FED president Charles Plosser, in a Bloomberg TV interview, said inflation expectations still appear to be anchored, but repeated comments from earlier this week about the importance of headline inflation on consumers’ perception of inflation.
Plosser also indicated that spreads between the fed funds rate and mortgage rates are high, but won’t deter the FED from raising rates.