FACTBOX-Fed views on U.S. inflation targeting =2

NEW YORK FED PRESIDENT TIMOTHY GEITHNER

Geithner has said inflation targeting might give policy-makers more, rather than less, flexibility. He has also said a target need not conflict with the Fed's dual mandate to pursue both price stability and full employment.

PHILADELPHIA FED PRESIDENT CHARLES PLOSSER

Plosser is an inflation-targeting proponent. On Sept. 25, he noted that a recent rise in inflation expectations after the Fed had cut the federal funds rate earlier in the month may not have happened if the Fed had an explicit inflation goal.

CLEVELAND FED PRESIDENT SANDRA PIANALTO

Pianalto has said she generally supports laying out an inflation objective. She has said inflation should average about 1.5 percent as measured by the PCE price index over periods of about three to five years, with a "tolerance zone" extending from 0.5 percent to 2.5 percent.

RICHMOND FED PRESIDENT JEFFREY LACKER

Lacker has said an inflation target would improve the effectiveness of monetary policy by helping to anchor inflation expectations. In terms of the core PCE price index, he has said he favors a target of 1-1/2 percent, but would also be comfortable with a range of 1 percent to 2 percent.

ST. LOUIS FED PRESIDENT WILLIAM POOLE

Poole is a long-time advocate of inflation targeting. He has said that zero inflation would be the best objective but that he would support whatever numerical target could be arrived at by consensus. Noting difficulties in measuring inflation, he has said 1 percent on the PCE price index would approximate zero inflation and that he might target a 0.5 percent to 1.5 percent range on the core PCE index.

MINNEAPOLIS FED PRESIDENT GARY STERN

Stern has said an inflation target would help the Fed better attain price stability by institutionalizing current practice, even though the benefits would not necessarily be large. Targets would reduce uncertainty about how policy-makers would respond to any given situation without binding the Fed's hands on policy, improve accountability, and better anchor expectations of future inflation.

KANSAS CITY FED PRESIDENT THOMAS HOENIG

No recent public comments. In 1998, he said he had "some sympathy" for an inflation targeting policy.

DALLAS FED PRESIDENT RICHARD FISHER

Fisher told Reuters on Oct. 30, 2006, he was undecided on whether adopting an explicit inflation objective was in the Fed's long-term interest.

SAN FRANCISCO FED PRESIDENT JANET YELLEN

Yellen supports adoption of an announced numerical inflation objective and has said an appropriate target would be 1.5 percent on the core PCE price index with a comfort zone extending from 1 percent to 2 percent. She agrees with Bernanke that such an objective should be a long-run goal and that the Fed should have a flexible timeframe for reaching it.

ATLANTA FED PRESIDENT DENNIS LOCKHART

Lockhart has not publicly discussed his position on inflation targeting.

CHICAGO FED PRESIDENT CHARLES EVANS

Evans has not spoken publicly about inflation targets since taking over from Michael Moskow on Sept. 1. Evans was credited with helping to develop a 2005 essay by Moskow in the bank's annual report that questioned the merits of rigid targets. In that essay Moskow said the Fed had largely obtained the benefits ascribed to formal inflation guidelines by its commitment to anchoring inflation expectations. (Compiled by Reuters Fed reporting team; Editing by James Dalgleish)