The Fed’s Plosser Lifts Futures Stating the Fed’s Position Has Not Changed

“Fed President Charles Plosser told CNBC on Tuesday that Fed policymakers were “puzzled” by the selloff on Wall Street last week when Fed Chair Janet Yellen said the central bank may raise interest rates sooner than expected.

“I don’t think the Fed changed its position,” Plosser said on CNBC’s “Squawk Box.” “In fact, it tried to say very explicitly in its statement that we believe forward guidance or the expectations have not changed as far as we’re concerned.”

Plosser said Yellen later clarified her comments on interest rates, in which she mentioned a six-month timeline after the Fed ends its massive stimulus program. In its most recent policy statement, the Fed dropped an unemployment level threshold from its guidance on interest rates, but Plosser said the bank still plans to be “data dependent” when it weighs when to raise interest rates….”

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