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Fed to lose its biggest critics

The Federal Reserve Bank will lose two voices that consistently countered the majority opinion.

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After nearly a decade as president of the Federal Reserve Bank of Philadelphia, Charles Plosser announced his retirement this week. Plosser will join Federal Reserve Bank of Dallas President Richard Fisher in stepping down next spring, but the two have more in common than that. Both Plosser and Fisher were outspoken critics of the Fed flexing its power through the economic stimulus campaign to change the dollar's value in an effort to prod job growth.

Plosser’s background was in academia as an economics professor, while Fisher wasn’t an economist at all, but rather a wealthy investor. Despite their co-critiques, the two were often outvoted by the majority of presidents. Neither had too many allies in the banking community — the Wall Street Journal rated Plosser’s predictions the least accurate, while Fed-head Janet Yellen was cited and praised for her precision.

Presidents of the country’s 12 regional reserve banks are limited to 10 years of service if appointed after their 50th birthday. The banks’ local boards will elect new presidents. Philly’s board is led by former School Reform Commission chairman James Nevels and Comcast executive Michael Angelakis.

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