Fed's Plosser: Yellen's 'six months' comment was no mistake: CNBC

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

(Reuters) - Federal Reserve Chair Janet Yellen did not make a “mistake” when she said that there may be around six months between the time the U.S. central bank ends its bond buying and starts to raise interest rates, a top Fed official said on Tuesday.

That time frame was already expected in the markets, Philadelphia Federal Reserve Bank President Charles Plosser told CNBC. “It’s better to get away from talking about time frames,” he said.

Still, he said, he was surprised the market reacted as much as it did. Stocks and bonds fell after her remark.

The Fed will not contemplate raising rates before it ends the bond-buying program, which will be probably be in October or November if the Fed’s current plan stays on course, Plosser said.

(This story deletes final paragraph that cites Plosser saying he expects rates to be at three percent at the end of 2016, after Philadelphia Fed spokeswoman said Plosser misspoke)

Reporting by Ann Saphir; Editing by Chizu Nomiyama and James Dalgleish