Outgoing Fed official warns of danger of verbal mishaps

Philadelphia

VERBAL missteps by the US Federal Reserve have increased the risk of a volatile market reaction when the time comes to raise interest rates, the outgoing president of the Philadelphia Fed said.

A week before stepping down from the US central bank, Charles Plosser said on Friday that the Fed can start sending the right message at a policy meeting next month, when he speculated it will likely drop a reference to patience in describing its approach to tightening monetary policy.