January 11, 2011
Philly Fed President Charles Plosser, who rotates this year to an FOMC voter, looks to be a dissenting inflation hawk. Using language that's uncharacteristically quotable for a Fed official, he warned today that QE2 could "backfire" if not withdrawn quickly.
Markets were quiet Tuesday with the Dow industrials fractionally higher to 11,671. Oil rose more than two percent to over $91 while gold rose slightly to $1,318. The dollar was little changed while Treasury rates slipped several basis points.