Philadelphia Fed president Charles Plosser on Tuesday staked out a few positions that differ from Fed chief Ben Bernanke regarding the conduct of the unconventional monetary policy. In a speech in Wilmington, Plosser said the Fed should set a target for the growth of its balance sheet in measuring its new policy. Plosser also said the Fed's decision to purchase longer-term securities could threaten its independence because it may face political pressure not to sell these assets. These arguments run counter to remarks that Bernanke made in a speech in London on Tuesday. Plosser said that the economy may begin to slowly recover in 2009. He said he was not too worried about the possibility of "persistent" deflation.

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