Fed's Plosser: 2014 wording does not mean much (by Greg Robb)
WASHINGTON (MarketWatch) - The Federal Reserve's statement that it plans to hold rates steady until late 2014 if economic conditions evolve as expected doesn't mean very much, said Charles Plosser, the president of the Philadelphia Federal Reserve Bank. "At the end of the day, we will change policy when the economy tells us to change policy," Plosser said in an interview on CNBC. Plosser said the economy is doing a lot better than it was last summer. The Fed may have to change course "sooner than a lot of people expect," and will be sooner than 2014, barring a catastrophe. "Right now, I see the economy that is going to be gradually firming," he said. "If the performance on employment and the economy continue to improve as we've seen them over the last six months, if they proceed for another six months, I think that would be pretty good cause for thinking maybe we need to ease off on the gas pedal a little bit," Plosser said.