Fed's Plosser Could Vote for Rate Hikes, New York Times Reports

In an interview with the New York Times, Philadelphia Fed President Charles Plosser said he might consider dissenting in favour of raising interest rates to fight inflation and maintain the Fed's credibility.

"Dissent serves a function of illuminating for the public the nature of the policy debates," the Federal Open Market Committee voting member said at the Jackson Hole central bank symposium over the weekend. "If we don't reverse our accommodative stance sooner rather than later we will face rising inflation, which may be costly to deal with, and we will face a risk to the Fed's credibility to contain inflation."

At the last FOMC meeting on Aug. 5, Plosser did not join Dallas Fed President Richard Fisher in voting for an interest rate hike, despite some speculation that he might do so.

By Erik Kevin Franco and edited by Stephen Huebl