Philadelphia Federal Reserve Bank President Charles Plosser said on Wednesday the reason he did not dissent at the U.S. central bank's last policy-setting meeting was because of the addition of "data-dependent" language to the Fed policy statement.
At its Oct. 28-29 meeting, the Fed decided to retain its guidance that overnight borrowing costs would remain near zero for a "considerable time," but noted it could move faster with an interest rate hike if incoming information indicated faster progress toward its goals.
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Plosser said on Wednesday the addition of that language is what convinced him to approve the Fed's policy statement. Plosser dissented at the Fed's policy-setting meeting in September over the continued use of the "considerable time" reference.
"The phrase 'considerable time' has lost all meaning," Plosser said in response to a question at a Charlotte Economic Club luncheon in North Carolina.
(Reporting by Michael Flaherty; Editing by Paul Simao)