Federal Reserve wants confidence on inflation, unfazed on dollar

Inflation is too low and the Federal Reserve is looking for evidence that inflation will return to a 2 per cent target, an influential Fed official said on Monday, adding that the strong dollar should not derail US economic momentum. 

PHOTO: REUTERS

10 Feb7:15 AM

[NEW YORK] Inflation is too low and the Federal Reserve is looking for evidence that inflation will return to a 2 per cent target, an influential Fed official said on Monday, adding that the strong dollar should not derail US economic momentum. "Inflation is too low. I want to have some reason for confidence that it is coming back to 2 per cent," Fed Governor Jerome Powell said on Bloomberg TV.

The stronger dollar "will weigh a little bit on our exports and it will certainly in the short-term hold inflation down through import prices, so it might be a slight headwind but I don't see it stopping the momentum" in the economy, he added.

REUTERS

      

• s

MORE

• Buffett says tough for Fed to lift rates given strong dollar
• Fed may not raise rates at all this year, says Lombard Odier official
• Reits retreat as Fed statement raises rate fears
• Bullard says investors wrong not to expect rate rise by mid-year
• Curbing threats to payment systems a priority: Fed's Rosengren
• Yellen tells US senators no rate rise soon amid concerns abroad