Market news
02.12.2011, 15:20

Fed: Philly's Plosser (voter and a hawk): “Buying mbs is 'straying' into fiscal pol realm”

  • Operation twist could have been done by tsy as well

  • Plosser deplores 'increasing calls' to abandon price stab'ty

  • Fed already 'blurred distinction' between mon/fisc pol

  • Prolonged fisc debate, uncert'y 'detrimental to growth

  • Higher taxes would discourage inv'mnt and work effort

  • Longer credible debt cut plan delayed more econ damage

  • Trutcural budg defs to persist beyond cycl'l problems

  • Unsust'ble fiscal path eventually leads to debt monet'zn

  • Debt monetization can lead to uncontrolled inflation

  • Using fed bal sheet for fiscal ends endangers independence

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