Inflation should push Fed in more accommodative fashion: Bullard

JACKSON HOLE, Wyoming Fri Jul 12, 2013 4:19pm EDT

The Federal Reserve Bank of St. Louis' President and CEO James Bullard speaks during the ''Hyman P. Minsky Conference on the State of the U.S. and World Economies,'' in New York, April 17, 2013. REUTERS/Keith Bedford

The Federal Reserve Bank of St. Louis' President and CEO James Bullard speaks during the ''Hyman P. Minsky Conference on the State of the U.S. and World Economies,'' in New York, April 17, 2013.

Credit: Reuters/Keith Bedford

JACKSON HOLE, Wyoming (Reuters) - A top Federal Reserve official said on Friday he was "not keen" to allow U.S. inflation to drift lower than the current 1 percent level, adding that was "not the end of the world" but "at the edge" of where it should be.

St. Louis Fed President James Bullard, speaking at an economics conference, said he did not want inflation measured by the Personal Consumption Expenditures price index to drift into the zero-to-1-percent range.

"Inflation should push us in a more accommodative fashion," Bullard said.

Philadelphia Fed President Charles Plosser, speaking on the same panel, said the U.S. central bank should defend that target from both "high and low" sides.

(Reporting by Jonathan Spicer; Editing by James Dalgleish)

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