Federal Reserve Bank of Philadelphia President Charles Plosser, who has opposed additional stimulus, said better-than-expected job growth bolsters the case for the central bank to wind down its asset purchases.
Federal Reserve Chairman Ben S. Bernanke and his colleagues are suffering through their own form of cognitive dissonance: revealing new concerns about the economy’s long-term prospects even as they forecast faster growth in 2014.
Federal Reserve Bank of Philadelphia President Charles Plosser, an opponent of Fed bond purchases, said the central bank should focus on price stability as its primary objective, and not worry as much about “fluctuations” in employment.
Gold and silver sank with oil, while the dollar weakened against most peers and Treasuries rose as investors dissected speeches from Federal Reserve officials to gauge the outlook for stimulus. Most U.S. stocks fell after the Dow Jones Industrial Average exceeded 16,000 for the first time.
A gauge of U.S. company credit risk rose after touching the lowest level in six years as investors bet that the Federal Reserve will continue the pace of its monetary stimulus in the coming months. T-Mobile US Inc. is planning to sell $2 billion of bonds in two parts.
The difference between Treasury five-year and 10-year notes yields widened to the most in more than two years as Federal Reserve Chairman-nominee Janet Yellen told Congress she will promote the Fed’s unprecedented stimulus program until economic growth is stronger.