Fed's Plosser calls for QE to end this year to avoid another housing boom

Charles Plosser, the president of the Philadelphia Fed, has said that the Federal Reserve should begin to taper quantitative easing (QE) in September, and halt entirely this year. He cautioned that the risks of the policy are growing with the size of the balance sheet.

Plosser highlighted that the QE exit will be dangerous, but that at present it generates unintended consequences and that the US should avoid creating another housing boom.

The Philly Fed president is well known as one of the most hawkish members of the Fed, so these comments won't surprise markets.