Philadelphia Fed President Charles Plosser was the only member with a dissenting vote during the June Federal Open Market Committee meeting due to a disagreement with the language used in the statement.
“The economy has improved significantly this year, and inflation and unemployment have moved much closer to the FOMC's longer-term goals,” Plosser said.
“However, neither the pace of the reduction in asset purchases nor its end date has been modified, nor has the time-dependent language associated with the projected liftoff of the federal funds rate been adjusted,” he continued.
As a result, Plosser said he casted a dissenting vote because of the statement, “It likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends."
Plosser explained he viewed such language as an inappropriate characterization of the future path of policy and so may limit the committee's flexibility going forward.
Due to the clear progress the economy has made toward its long-term goals, Plosser no longer believes the forward guidance language in the statement is appropriate or warranted.