Fed's Lacker: monetary policy should head off inflation, not bubbles
RICHMOND, Va. Jan 17 (Reuters) - Federal Reserve policymakers should not let concerns over asset bubbles get in the way of their use of monetary policy to keep inflation on target, a senior Fed official said on Friday.
"Deflecting monetary policy from its price stability mission to make up for market imperfections ... seems to me misguided," Richmond Federal Reserve President Jeffrey Lacker told journalists.
Lacker also said a report showing weak U.S. hiring in December appeared to be "aberrational" and that the tone of recent economic data was not close to changing his mind that the Fed should continue to reduce monthly bond purchases.
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