Fed's Fisher unworried by current low inflation

AUSTIN Wed Apr 16, 2014 2:50pm EDT

Richard Fisher, president of the Federal Reserve Bank of Dallas, speaks on ''U.S. Economy and Monetary Policy: Where to From Here?'' during at luncheon in Hong Kong April 4, 2014. REUTERS/Tyrone Siu

Richard Fisher, president of the Federal Reserve Bank of Dallas, speaks on ''U.S. Economy and Monetary Policy: Where to From Here?'' during at luncheon in Hong Kong April 4, 2014.

Credit: Reuters/Tyrone Siu

AUSTIN (Reuters) - Dallas Federal Reserve Bank President Richard Fisher said he is "not uncomfortable" with the current low level of U.S. inflation, and will not vote for or support any policy that drives it above the Fed's long-term 2-percent goal.

"We are in that region of 1 to 2 percent; I am not uncomfortable with that," Fisher said. "I am a hawk as they call it in the aviary of the Federal Reserve, and I will not tolerate, nor will I vote for, policy if I lift that rate beyond the 2 percent long-term target that almost every central bank in the world has."

Fisher, who has a vote this year on the Fed's policy-setting panel, said he is happy with the direction the economy is taking, although he is concerned about potential speculative activity in junk bonds that may, in his view, be fueled in part by the Fed's super-easy monetary policies.

(Reporting by Ann Saphir; Editing by Meredith Mazzilli)

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