Feb 5 Charles Plosser, president of the Federal
Reserve Bank of Philadelphia, said on Wednesday he worries the
U.S. central bank's accommodative policies will lead it to have
to "chase" the market when in the future it attempts to tighten
"We at the Fed should be worried about the law of unintended
consequences and whether or not we can execute the plan that we
think will get us there - whether markets will get out ahead of
us rapidly, how fast we might have to chase rates up for
example, or whether we might have to push them up in a way that
causes other disruptions in financial markets," Plosser told an
economics conference in Rochester, New York.
"I think it's safe to say we don't have very good answers to
those sorts of questions," he said, adding: "The risk of
unintended consequences can be significant."