Philly Fed president Plosser, one of the more hawkish Fed members suggests the Fed needs to hike sooner rather than later in an interveiew the Times. No doubt, this was one factor in the flurry of dollar strength in Asia overnight.
“If we don’t reverse our accommodative stance sooner rather than later,” Mr. Plosser said in an interview here, “we will face rising inflation, which may be costly to deal with, and we will face a risk to the Fed’s credibility to contain inflation.”