Philadelphia Fed chief to retire

The Federal Reserve is set to lose one of its more “hawkish” members, as Charles Plosser, head of the Philadelphia Federal Reserve Bank, announced plans to retire Monday.

Plosser, who has led the Philadelphia Fed since 2006, has emerged as one of the central bank’s stricter voices when it comes to curbing inflation. As a Fed “hawk,” Plosser have often served as a counterweight to the “dovish” members of the Fed that are seen as more concerned with unemployment, including Fed Chairwoman Janet Yellen.

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In a statement, Yellen praised Plosser, 66, as an “insightful and dedicated leader and colleague.”

The Philadelphia Fed announced it had formed a search committee to line up a replacement.

A voting member on the Fed’s policy-setting Federal Open Market Committee, Plosser worked to pull the central bank towards a more inflation-cautious perspective, after years in which the Fed took unprecedented steps to drive rates as low as possible and stimulate the economy.

Now, as the Fed is preparing to end its bond-buying “quantitative easing” program, the attention of Fed-watchers has turned to when the central bank might hike rates for the first time in years.

At the Fed’s most recent meeting, Plosser was one of two voting members who dissented from the central bank’s policy statement. In that statement, the Fed told markets that while it was soon wrapping up bond-buying stimulus program, the Fed was still prepared to keep rates near zero for a “considerable time.”

Both Plosser and Richard Fisher, head of the Dallas Fed, wanted to see the Fed indicate it was getting closer to raising rates. Plosser specifically objected to the “considerable time” language kept in the Fed’s statement, arguing it was too time-dependent and ignored the progress the economy has made.