KING OF PRUSSIA, Penn. (Reuters) - Monetary policy is in a tight spot as policy-makers need to look at the economy going forward while making sure that inflationary expectations stay in check, Philadelphia Federal Reserve President Charles Plosser said on Tuesday."Monetary policy is caught between a rock and a hard place," he said in response to a question after a speech to local business leaders.Monetary policy takes time to work through the economy -- both the "historic" amount of Fed rate cuts this year or when the Fed reverses course, he said.Plosser is a voting member this year on the Fed's interest rate-setting Federal Open Market Committee and is known to be one of the Fed's more hawkish members. He voted with the majority to keep benchmark rates steady in June but dissented in April and March when the Fed eased monetary policy.(Reporting by Pedro Nicolaci da Costa and Tamawa Kadoya; Editing by James Dalgleish)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
