CHICAGO (Reuters) - The Federal Reserve should not worry too much if inflation temporarily rises above the Fed’s 2 percent goal, a top Fed policymaker said.
“Sometimes I think we are trying to thread the needle” too much on inflation, Chicago Fed President Charles Evans said at symposium on the Fed’s first 100 years at Loyola University’s Quinlan School of Business.
Inflation is now running much lower than the Fed’s goal, and Fed policies designed to push it back up may possibly overshoot, he said.
But the Fed’s goals on inflation and on achieving maximum employment should be “symmetric,” he said, meaning the Fed should give them equal weight.
Evans also said he is not willing to used monetary policy to lean against the rise in stock prices that some see as a potential bubble.
Reporting by Ann Saphir; Editing by Eric Beech