FRB's Plosser: Screw You, Fed Futures!
While the Fed Futures rate may have priced in at 96% likelihood a rate cut at the Federal Reserve Board's December meeting, someone needs to tell the Philadelphia Fed's Charlie Plosser. According to a series of flashes on the wire just now he is pretty much dismissing the idea, saying that he doesn't think a rate cut would matter, and implying that solving subprime is a fiscal, not a monetary issue.
Fed's Plosser keeps hawkish tone, no support of Dec rate cut
12:20 PM ET, Nov 27, 2007 - 2 minutes ago
Granted, he is a non-voting member of the Federal Open Markets Committee this year, but Plosser does get to participate in the FRB's rate discussions in December.
