Inflation is "likely" to hit the Federal reserve's 2% target over the medium-term, Federal Reserve Bank of Richmond President Jeffrey M. Lacker said Wednesday.
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"Although inflation is running below the Fed's 2 percent target, measures of inflation expectations suggest it is likely to move back toward 2 percent over the medium term," he told The Johns Hopkins Carey Business School, according to text released by the Fed.
"Monetary policy's effect on real economic activity is limited and temporary, although poorly executed monetary policy can persistently impede economic growth," he added.
Economic growth depends on monetary stability, he said. "The most important contribution central bankers can make to growth is low and stable inflation."
