Could QE2 End Early?

Charles Plosser, the president of the Philadelphia Federal Reserve Bank, has been more moderate on quantitative easing lately, and Plosser believes the program may have to end early if the economy continues to pick up pace. In his first speech of the year today, Plosser said the Federal Reserve could potentially have more easing if serious deflation risks rear their head. Plosser is expected to replace Kansas City Fed President Thomas Hoenig as a frequent dissenter at FOMC meetings this year. In the statement, Plosser said, "The aggressiveness of our accommodative policy may soon backfire on us if we don't begin to gradually reverse course."