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Fed's Plosser-Two more months before data free of weather impact
March 6, 2014 / 8:17 PM / in 4 years

Fed's Plosser-Two more months before data free of weather impact

LONDON, March 6 (Reuters) - It will be at least two more months before U.S. data will not be distorted by the recent icy weather conditions, one of the Federal Reserve’s top policymakers said on Thursday.

Speaking ahead of Friday’s non-farm payrolls data, Philadelphia Fed President Charles Plosser stressed he had no information on the numbers, but that the chilly February when the numbers were collected meant they were open to potential distortion.

“I think it is going to be a couple more months before all the noise of the weather gets filtered out,” he said. “Let’s be patient and take a longer-term horizon view.”

Plosser also said that though the tug-of-war between Ukraine and Russia over Crimea would add volatility to financial markets, it should not have any significant impact on the U.S. economy or the Fed’s policy plans.

“I don’t see it (Ukraine) as terribly fundamental to how the U.S. economy evolves.”

Plosser, an avowed policy hawk who has opposed the Fed’s super-easy monetary policies and votes on Fed policy this year, stuck to his view that the central bank needed to clearly spell out how it plans to return to a more normal policy setting.

He has long been a proponent of rules-based monetary policy, an approach that has come under attack by some core members of the Fed’s policy-setting panel.

“You have to commit to following through with it (reaction function),” Plosser said. “And when you deviate, you have to explain why.”

for story on earlier speech by Plosser click Reporting by Marc Jones and Sudip Kar-Gupta

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