11:41 AM » Fed's Plosser says policy should respond to better outlook
WASHINGTON (MarkeWatch) -- The Federal Reserve should consider hiking rates in response to the improving outlook, said Charles Plosser, president of the Philadelphia Fed, on Friday. "We should not be keeping rates at zero until we meet all our objectives," Plosser said in an interview on Bloomberg TV. As the Fed gets closer to its goals, monetary policy ought to be reacting, he said. "We are closer than a lot of people might think," he said. Waiting too long can be "disruptive," he said. The Fed risks losing control of financial markets and "having to raise rates faster and higher because we are so far behind that the markets get ahead of us," he said. Plosser, considered one the most hawkish Fed officials, is a voting member of the central bank's policy committee this year.