Charles Plosser Comments on QE, US Economy

Following an earlier speech, the Federal Reserve's Charles Plosser commented to reporters about the prospects for monetary policy and the US economy. Plosser stated that he was concerned that inflation was "drifting up." He stated that the European crisis has lead to a flight to treasuries and other safe assets. Plosser stated that it was difficult to tell the impact of operation twist on rates. Plosser stated that he never thought of "Okun's law" as a "law"--meaning, he did not think that the perceived relationship between GDP growth and job creation was an economic law. Plosser stated that his economic opportunism was based on employment growth and manufacturing. In terms of employment, Plosser stated that demographics were having a significant effect in the declining rate of the labor force participation. Plosser, who dissented on several occasions last year, stated that he has never been fond of the 2014 main rate forecast. He stated that he has not had any discussion about sterilized quantitative easing. Plosser is a noted hawk. However, Plosser is not a voting member of the FOMC this year.