By Ann Saphir
(Reuters) – The lone Federal Reserve policymaker to dissent against the U.S. central bank’s decision this week to end its bond-buying stimulus said Friday that the Fed was risking its credibility by failing to take action against a worrisome drop in inflation.
Not only is there no evidence that inflation is moving back toward the Fed’s 2-percent goal, Minneapolis Fed President Narayana Kocherlakota said in a statement explaining his dissent, the outlook for inflation is “arguably worse” than it was last December.
(Reuters) – Two regional Federal Reserve banks have taken steps to replace their hawkish presidents, Charles Plosser and Richard Fisher, whose departures early next year could change the tenor of debate within the U.S. central bank’s policy-setting committee.
The Philadelphia Fed said on Thursday it had hired executive search firm Korn Ferry to find a successor to Plosser, 66, who will retire on March 1 after more than eight years at the helm. A committee of Philadelphia Fed directors working with Korn Ferry will consider “a diverse group of candidates from inside and outside” the Fed, it said.