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Unwise to adjust Fed's rate-rise thresholds -Plosser
January 14, 2014 / 7:31 PM / 4 years ago

Unwise to adjust Fed's rate-rise thresholds -Plosser

PHILADELPHIA, Jan 14 (Reuters) - The Federal Reserve has made clear it would be “in no rush” to raise interest rates were U.S. unemployment to fall to 6.5 percent from 6.7 percent now, so it is “unwise” to adjust that so-called policy threshold, Philadelphia Fed President Charles Plosser said on Tuesday.

The central bank has said it will likely keep rates near zero well past the time unemployment hits that previously stated unemployment threshold, especially if inflation remains too low.

Turning to the central bank’s ongoing bond-buying program, Plosser told reporters the Fed seems to be on a path to completely winding down the program and, for him at least, it would be a fairly “high bar” to halt the tapering off of the purchases this year.

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