Charles Plosser: The Fed Can’t Speed Up Labor Market Recovery

WASHINGTON (By Emily Kaiser): Monetary policy cannot speed up labor market healing or prevent asset price bubbles, and counting on it to do so may do more harm than good, a top U.S. Federal Reserve official said.In a speech to be delivered i…

WASHINGTON (By Emily Kaiser): Monetary policy cannot speed up labor market healing or prevent asset price bubbles, and counting on it to do so may do more harm than good, a top U.S. Federal Reserve official said.

In a speech to be delivered in Santiago, Chile, on Monday, Philadelphia Federal Reserve Bank President Charles Plosser cautioned against relying too much on the central bank, and said its powers ought to be curbed to prevent abuse.

“I believe we have come to expect too much from monetary policy,” he said in his prepared remarks. A copy was made available in Washington before the speech.

Read More…
More on The Fed