The goal of monetary policy is not to address individual price movements, but to manage the overall direction and pace at which all prices across the economy change, Atlanta Federal Reserve Bank president Dennis Lockhart said Tuesday.

In prepared remarks to the Calhoun County Chamber of Commerce in Anniston, Ala., Lockhart defended the Fed against those who believe the reason for the recent rise in prices around the world can be traced back to actions by the Federal Open Market Committee.

In his remarks, Lockhart sought to differentiate between the rise in prices and cost of living — which is presently underway — and inflation.

“For the moment, inflation, properly defined, is tame, in my view,” he said. “And the rise of individual prices does not signal incipient inflation.”

— Market News International

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