- Sustained US deflation not imminent and is highly unlikely
- Aggressive Fed policy may soon backfire unless gradual reversal begins
- Need to reconsider QE if economy grows more quickly
- Economy set for continued moderate recovery
- Differing opinions at Fed won’t confuse markets or create uncertainty
Plosser is among the most hawkish of the new FOMC voters but is unlikely to have much more success in reversing Fed policy than Tom Hoenig did…
