Pianalto: Fed Strategy Reaps Low, Stable Inflation

PARIS — Although U.S. core prices are rising faster than hoped and inflation remains a risk to the U.S. economic outlook, the Federal Reserve’s current monetary policy strategy should still result in low and stable inflation, Fed board member Sandra Pianalto said yesterday.

In a speech at the Global Interdependence Center here, Pianalto acknowledged that monetary policymakers were in a “challenging environment,” but insisted that globalization per se should not impair the ability of central banks to hit their inflation targets.

“While even the core price measures in the United States are rising somewhat faster than I would prefer, and inflation presents a key risk to my outlook, I believe that the Federal Reserve’s policy strategy remains compatible with a low and stable inflation rate,” Pianalto said.

— Market News International

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