Bernanke, Philadelphia Fed's Plosser differ on policy

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In a speech, Philadelphia Fed Bank President Charles Plosser publicly took issue with positions advocated by Chairman of the Fed, Ben Bernanke.

From Market Watch...

In breathtaking innovation in monetary policy, the Fed, under Bernanke's leadership, since the fall has not only expanded its balance sheet from $900 billion to well over $2 trillion in its efforts to restore the credit markets to health but has stoppped offsetting the expanding bank reserves.

Plosser urged the Fed to "proceed with caution" with the new policy.

"It is a huge disagreement," said Robert Brusca, chief economist at FAO Economics

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Tags: bernanke, philadelphia fed, robert brusca, fao economics, charles plosser