If the U.S. economy improves as forecast, the Federal Reserve's current taper pace may be too slow, said Philadelphia Federal Reserve President Charles Plosser on Tuesday
A strengthening U.S. economy may force the central bank to hike rates "sooner rather than later" to stay ahead of inflation, Plosser said.
Affirming his hawkish stance, Plosser in a Washington speech said the Fed is at risk of falling "behind the curve" in its control of inflation if policy stays at its current loose level as the economy grows and the labor market continues to improve.
He said he sees growth at 3 percent this year, despite a dim first-quarter result that he, along with many Fed members, have attributed to severe winter weather.
Overall the U.S. economy "is on the firmest footing it has been on since the recovery began," Plosser said according to a prepared text distributed ahead of his remarks at a housing conference. He dismissed the first-quarter reading as an aberration and said the "underlying details are...encouraging."