Sticking to tried and tested rules is the only way to deliver clear and efficient monetary policy, Charles Plosser, the president of the Philadelphia Federal Reserve, said on Tuesday.

In remarks to a financial forum organised by the Czech National Bank, Plosser also stressed that picking the right rule and applying it correctly were of essence. In this regard, he dismissed variations of the widely-used Taylor rule that calls for central bankers to look at the output gap instead of the inflation