BERN (Reuters) - Pressure on U.S. prices will push inflation towards the Federal Reserve’s target, a top official at the central bank said on Thursday.
“I have become convinced... that the forces at work in a reasonable horizon, once these transitory influences have passed, will give us the price pressures that move us to our target,” Atlanta Fed President Dennis Lockhart, a well-respected centrist and a voter on the Fed’s monetary policy committee this year, told a conference in Switzerland.
“I am prepared to take that leap of faith, so to speak. Not everyone is.”
Earlier, Lockhart said the Fed in its last policy statement was deliberately trying to convince investors of a possible December interest rate hike, and was successful in doing so.
Reporting by Joshua Franklin and Angelika Gruber; Editing by Michael Shields