Two Federal Reserve officials who have warned loudly and persistently that the Fed is overreaching in its economic stimulus campaign plan to retire next year after completing terms on the Fed’s policy-making committee, the New York Times reported today. Charles Plosser, president of the Federal Reserve Bank of Philadelphia since 2006, said yesterday that he would retire in March. Richard Fisher, president of the Federal Reserve Bank of Dallas since 2005, is required to step down by the end of April. Both men dissented at the committee’s most recent meeting, last week, arguing that the central bank is not retreating fast enough from its support program as the economy gains strength. The departures are unlikely to have a large influence on policy. The two men, and a handful of like-minded officials, have been marginalized in recent years as their warnings that inflation would accelerate have failed to materialize. The Fed’s chairwoman, Janet L. Yellen, and her predecessor, Ben S. Bernanke, have chosen to press ahead with majority support rather than seeking unanimity.
http://www.nytimes.com/2014/09/23/business/fed-official-crtical-of-poli…
To listen to further perspectives on Fed Policy, be sure to attend ABI’s luncheon at the 88th NCBJ Annual Meeting. Richmond Federal Reserve President Jeffrey M. Lacker will deliver a keynote titled “ Rethinking the Unthinkable: Bankruptcy for Large Financial Institutions.” Click here for more information: http://www.ncbjmeeting.org/index.php