Former Fed Pres. Plosser Says ‘Not a Bad Idea’ to Raise Rates

As the Federal Reserve considers a possible hike in interest rates next month, former Fed President Charles Plosser said normalizing rates following years of a zero-rate environment will be difficult. ‘We’re in unchartered territory, this is something we’ve never done before, and central banks rarely have done’ said Plosser, who served as the president of the Federal Reserve Bank of Philadelphia for eight and a half years, before retiring this past March. ‘I think there’s going to be some learning along the way and we’re going to have to see what techniques or strategies work most effectively. But it’s going to be a challenge,’ said Plosser. Plosser made his comments at Camp Kotok, a gathering of economists, money managers, and others from the financial industry, held each year in Maine.