PHILADELPHIA, Feb 17 (Reuters) - The U.S. Federal Reserve takes into account the signals the U.S. dollar sends about the economy but it is important not to put too much weight on day-to-day swings, Philadelphia Federal Reserve Bank President Charles Plosser said on Wednesday.
"The dollar is not a target of the Fed per se, but we do as policymakers look at the dollar" in terms of the signals it sends about the economy, Plosser said in response to an audience question after a speech to the World Affairs Council of Philadelphia.
Answering a separate question, Plosser said U.S. fiscal policy is "unsustainable right now" and will eventually put upward pressure on interest rates.
Plosser, known as a "hawk" on inflation, is not a voter on the Fed's policy-setting Federal Open Market Committee this year. He rotates into a voting seat next year. (Reporting by Kristina Cooke; Editing by James Dalgleish)