Two hrs before Bernanke speaks on the economy and likely lays out what the WSJ reported on its front page today “Fed Prepares to Act,” he seems to already have one dissenter, one that also dissented on Aug 9th. Fed voting member Plosser is saying he doesn’t think the Fed needs to provide new stimulus. Here are some headlines from DJ reporting his comments, “lower bond yields unlikely to help job market much,” “skeptical of monetary policy impact on unemployment,” “monetary policy may not be best tool to cure joblessness,” “recession not in my forecast,” “challenge to find ways to use monetary policy effectively,” “QE2’s only benefit was to lift inflation expectations,” “thought 2013 Fed pledge was bad idea,” “doesn’t think economy’s weakness will persist,” “Fed shouldn’t be too sanguine about inflation,” “inflation expectations muddled because of flight to safety,” and “doesn’t know what vote will be at next FOMC” meeting.
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