Philadelphia Fed President Charles Plosser, a
voter on monetary policy this year, said the central bank's
balance sheet is still growing at "a fairly rapid clip" despite
the $10-billion reduction in monthly asset purchases, which
started this month.
Dusting off arguments he and other hawkish officials made before
the recent bout of low inflation, Plosser said he was less
concerned about disinflation and more concerned about too-high
inflation if banks start to quickly release the $2.4 trillion in
excess reserves they now hold.
(Reporting by Jonathan Spicer;
editing by Chizu Nomiyama)
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