Federal Reserve Bank of Philadelphia President Charles Plosser on Tuesday claimed that the Fed should stick to its plan to end its purchases of mortgage-backed securities this quarter, expecting unemployment rate to rise slightly before beginning a gradual decline.

"We have indicated that we will complete our planned $1.25 trillion of purchases during this quarter", Plosser said during a speech to the Entrepreneurs Forum of Greater Philadelphia. "I believe it is important that we do so and reduce our participation in this market, so the private market can once again resume a significant role".

In addition, he cited that positive signs indicating the sustainability of recovery leading to its emergence amidst severe recession have been propelled by housing activity, consumer spending and the manufacturing sector.

The growth is expected to continue even as the fiscal and monetary stimulus programs eventually wind down. However, the outlook for economic growth is becoming clearer while the outlook for inflation continues to be harder to read.

He posed that the losses incurred in the real estate sector continues to jeopardize the economy. But argued these risks will subside as economy stabilizes with recovering consumer spending recovers and rising employment.