Philly Fed's Plosser weighs vote against QE2 (by Steve Goldstein)

WASHINGTON (MarketWatch) -- One of the most hawkish of the new voting members of the Federal Open Market Committee, Philadelphia Fed President Charles Plosser, on Wednesday said he's considering voting against continuing the $600 billion bond buying program but is also concerned about undermining the Fed's credibility. "Based on my reading of the economic outlook and challenges that the economy faces, I have expressed some doubts that the benefits outweigh the costs of this policy," Plosser said before the Rotary Club in Birmingham, Ala. "However, I supported continuation of the policy in January because it is generally a good practice for a central bank to do what it says it is going to do unless circumstances significantly change." He said should economic prospects continue to strengthen, he would not rule out voting to bring the bond buy program to an early close. "If the growth rates of employment and output begin to accelerate or if inflation or inflation expectations begin to rise, then it may be time to begin taking our foot off the accelerator," he said.