Charles Plosser Has Second Thoughts. And Third.

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Foes of Ben, fear not: After a (very) brief flirtation with dovishness, re: the Fed's $85 billion/month habit, Philly Fed Pres. Charlie Plosser is feeling hawkish again.

“Labor market conditions warrant scaling back the pace of purchases as soon as our next meeting,” Mr. Plosser said in the text of a speech to be delivered in Stockholm. The next FOMC meeting is scheduled for June 18 and 19.

He added “unless we see a significant reversal in current trends that jeopardizes my forecast of near 7% unemployment rate by the end of this year, then I anticipate that we could end the program before year-end….”

Mr. Plosser has opposed that effort and still believes it was a mistake.

Alas, he still does not have a vote—and is still suspiciously waffling.

At the same time, while he doesn’t think it is likely, the non-voting member of the monetary policy setting Federal Open Market Committee said that if price pressures were to wane significantly from their current level, he would be open to increasing the asset purchases in a bid to ward off the forces of deflation.

Meanwhile, someone who has a lot of votes will tell it like he'd like it to be before a group of the "fiscal authorities" who are fucking up all of his good work.

Federal Reserve Chairman Ben Bernanke will update Congress on the central bank’s economic outlook on May 22 in testimony before the Joint Economic Committee, according to a release on the website of the panel’s vice chairwoman….

Mr. Bernanke is scheduled to testify at 10 a.m. on May 22, according to the committee site of Sen. Amy Klobuchar (D., Minn.). The minutes of the Fed’s policy meeting are expected to be released at 2 p.m.

Fed's Plosser Wants Bond Buying to Taper at Next FOMC Meeting [WSJ Real Time Economics blog]
Bernanke to Update Congress on Economic Outlook May 22 [WSJ Real Time Economics blog]

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