Fed's Plosser warns on discretionary policy decisions

ELTVILLE, Germany (Reuters) - The debate over how the Federal Reserve can best articulate its policy actions grew on Friday as a top Fed official warned against discretionary decisions, and asked whether a more systematic approach was desirable.

SOMERSET, N.J. – A top U.S. Federal Reserve official waded into the sticky debate over global currency wars on Friday, warning that such beggar-thy-neighbor monetary policies would only hurt world trade and the economies that were involved. Philadelphia Federal Reserve Bank President Charles Plosser said central banks in many countries are adopting policies, often under pressure from governments, to control their currencies, calling it an unhealthy phenomenon.

Submitted by Brandon Smith of Alt-Market blog,

AVONDALE, Penn. (Reuters) - The Federal Reserve's stated intention to keep interest rates ultra low for nearly three more years is suggesting to some that the Fed is willing to cut the jobless rate at the expense of higher inflation, putting the central bank's credibility at risk, a top official of the U.S. central bank said on Thursday Charles Plosser, president of the Philadelphia Fed and one of the most hawkish of the Fed's 19 policymakers, in a speech on Thursday weighed in on the simmering debate over just how high U.S. ...

By Mark Thoma: Federal Reserve Bank of Philadelphia President Charles Plosser voted against Operation Twist -- the recent attempt for the Fed to help the economy -- because:

AVONDALE, Penn.

PARIS (Reuter