Fed’s Plosser calls for rules for crisis-fighting measures

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The Federal Reserve risks losing its credibility and exacerbating moral hazard unless it adopts a rules-based approach to its exceptional monetary policy measures, Charles Plosser, the president of the Philadelphia Federal Reserve Bank, said on Friday.

"Central bank independence is no guarantee that time-inconsistency problems that are inherent in monetary policymaking will be mitigated without explicit rules and constraints," Plosser said in Zurich. "Having the ability to make credible commitme

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