Fed's Plosser: raising rates in 2011 a possibility

Reuters

HARRISBURG (Reuters) - Raising interest rates by the end of 2011 should be "on the table," depending on how the economy improves over the next few months, Philadelphia Federal Reserve Bank President Charles Plosser said on Friday.

"In my mind it is definitely on the table, but it will depend in my view how things play out over the next few months," said Plosser, a voter on the Fed's policy-setting committee and an inflation hawk.

Continue Reading Below

"If inflation picks up and the economy continues to grow above trend, and inflation begins to pick up and expectations look like they're edging up, it will be appropriate in my view that we take appropriate policy responses to that," Plosser said.

(Reporting by Edith Honan; Editing by Padraic Cassidy)