NEW YORK, May 21 (Reuters) - Boston Fed President Eric Rosengren on Tuesday said he is not as worried as some of his colleagues about inflation being below the Fed’s target right now.
“I do view the inflation misses as predominantly being temporary,” he told the Economic Club of New York. “I’m not as worried as some of my colleagues about the extent of the inflation miss we have right now.”
Rosengren, one of 10 people who vote on the Fed’s rate-setting panel this year, has been suggesting the Fed might benefit from a longer-term shift to targeting an inflation range that averages 2% over time rather than a precise 2% goal as it does currently.
The Fed’s preferred inflation gauge, the core personal consumption expenditures (PCE) price index, rose 1.6% on a year-on-year basis in March, the smallest rise in 14 months. (Reporting by Trevor Hunnicutt Editing by Chizu Nomiyama)