NORFOLK, Va. May 2 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
"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
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.