Fed's Plosser not yet troubled by weaker U.S. inflation

NEW YORK Thu May 9, 2013 3:20pm EDT

Philadelphia Federal Reserve President Charles Plosser speaks at an Economics21 event in New York, March 25, 2011. REUTERS/Brendan McDermid

Philadelphia Federal Reserve President Charles Plosser speaks at an Economics21 event in New York, March 25, 2011.

Credit: Reuters/Brendan McDermid

NEW YORK (Reuters) - Philadelphia Fed President Charles Plosser said on Thursday he is "not too concerned" about weaker recent U.S. inflation readings, arguing he expects Personal Consumption Expenditure (PCE) measurements to start to drift back up from close to 1 percent now.

"Obviously if expectations begin to fall or if there is further pressure on those you'd have to sit back and take notice," Plosser, a hawkish U.S. central bank official who does not have a vote on policy this year, told reporters.

"I do believe we have to defend our inflation target (of 2 percent) both on the upside and the downside and it's important to do so," he added. "But as long as inflation expectations remain well anchored I'm reasonably comfortable."

(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)

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