Plosser: Rates may have to go up sooner vs. later

WASHINGTON (AP) - To fend off inflation, the Federal Reserve probably will need to boost interest rates "sooner rather than later" even if employment and financial conditions haven't revived, Charles Plosser, president of the Federal Reserve Bank of Philadelphia said Tuesday. Plosser is a voting member of the Federal Open Market Committee, the group including Fed Chairman Ben Bernanke that determines the direction interest rates should go to influence national economic activity. Out of concern about inflation, the Fed in June ended a nearly yearlong string of rate reductions aimed at shoring up the wobbly economy. The Fed left its key rate at 2 percent. Many economists predict Fed policymakers will leave rates alone again when they meet next on Aug. 5. Possessing a reputation for being extra-vigilant about inflation dangers,... [read full story]