VOL. 126 | NO. 38 | Thursday, February 24, 2011
Fed Official Mulls Early End to Bond-Buying Plan
JEANNINE AVERSA | AP Economics Writer
WASHINGTON (AP) — A Federal Reserve official says he may push for an early end to the central bank's $600 billion bond-purchase program if inflation shows signs of spreading.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, is an outspoken critic of the program, which is slated to end in June. Plosser says he "would not rule out" pressing the Fed for an early end to the program if the economy grows more strongly than anticipated and inflation picks up too much speed. The Fed's next meeting is March 13.
Plosser supported maintaining the pace of the program at the Fed's January meeting. He says the Fed had largely signaled ahead of that session that it would proceed with the program. Plosser says he didn't want to undermine the Fed's credibility.
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