Former Philly Fed’s Plosser: Yellen Fed Credibility Damaged, says Fed Has ‘No Real Strategy’

Former Philly’s Fed Plosser is calling out the Yellen Fed for being inconsistent and rudderless in their official policy on interest rates. Essentially, Plosser thinks they’re a bunch of fucking morons wasting everyone’s time with abject drivel, words that are effectively meaningless that are never backed up with actions.

“They say they’re data-dependent but in September they couldn’t even point to any data that suggest they should stand pat,” he said in the interview with Jon Ferro, David Westin and Alix Steel. “That does damage, I think, to their credibility about them being data-dependent. It’s really troubling.”

Officials “have no real strategy about how they’re going to proceed, so they can’t communicate to the markets about what’s going to happen, and the markets are guessing,” Plosser said. “They’re talking like they intend to raise rates — and there’s lots of reasons why they should raise rates and they know that — but then they never act.”