- Taxes on some wealthy French top 100 pct of income: paper
- North Korea fires short-range missiles for two days in a row |
- Israel warns against Russian arms supply to Syria
- Winning ticket for $590.5 million Powerball lottery sold in Florida |
- Toyota plans to increase lithium-ion car battery output-Nikkei
Fed's Lacker: High inflation target "dangerous"
NORFOLK, Va. |
NORFOLK, Va. May 2 (Reuters) - It would be "very dangerous" for the Federal Reserve to adopt a higher inflation target to spur growth in the hopes that it could bring inflation down later when it needed to, a top Federal Reserve official said on Wednesday.
"I don't think it would be easy to temporarily adopt a higher target and then successfully return to a lower inflation," Richmond Federal Reserve President Jeffrey Lacker told reporters after a speech. "In fact, I think it would be very dangerous."
Some economists have suggested that central banks should shoot for higher-level inflation in order to have more room for monetary policy to react to shocks. The Fed currently targets inflation at 2 percent.
- Tweet this
- Share this
- Digg this