While “comfortable” with current monetary policy, Federal Reserve Bank of Cleveland president Sandra Pianalto said Thursday she would love to hike interest rates before late 2014 “on the basis of a brighter outlook for economic growth,” but the recent spike in oil prices may “complicate” inflation.
While expecting inflation to remain near 2%, Pianalto acknowledged, “the recent spike in oil prices and housing rents could complicate the inflation picture if they persist,” according to prepared text of a speech to the City Club of Cleveland released by the Fed.
“In my assessment, doing more at this time could create too much inflation risk and doing less could risk weakening an already slow expansion and causing an unwelcome disinflation,” Pianalto said.
