Short-term interest rates should hit 4% at the end of 2016, said Charles Plosser, the president of the Philadelphia Federal Reserve Bank on Tuesday. In an interview on CNBC and later comments, Plosser said he expected short-term rates to hit 3% at the end of 2015. Plosser noted that his projections for rates are higher than most of his colleagues. The Philadelphia Fed President said there is a risk of volatility in the stock market as the Fed heads to the exit. This could be one of the "unintended consequences" of the Fed's policy, he said. Plosser said he was puzzled by the market's response to Fed Chairwoman Janet Yellen's press conference. He said her timetable of a rate hike six months after the end of bond buying "wasn't a wildly unexpected timeframe." The comment sparked a stock-market selloff last Wednesday. "I'm a bit surprised the market reacted the way it did," he said. Plosser is a voting member of the Fed's policy committee this year.
There is no change from what Janet Yellen said and he says,...Plosser quantified, she gave the time line, if you need to reach 4 percent by end 2016 then the increase needs to begin in early 2015 or even earlier.
There is no change from what Janet Yellen said and he says,...Plosser quantified, she gave the time line, if you need to reach 4 percent by end 2016 then the increase needs to begin in early 2015 or even earlier.