Fed’s Barkin Says Backing Monetary Policy Normalization

Fed's Barkin Says Backing Monetary Policy Normalization

NEW YORK, Dec 2 (Reuters) – Federal Reserve officials must be prepared to adapt monetary policy to respond to changes in the economy, including a faster-than-expected rise in inflation due to factors such as the coronavirus, Richmond Fed Chairman Thomas Barkin said Thursday.

An important part of the US central bank’s price stability mandate is to anchor inflation expectations near its 2% target, something that can be difficult to do when inflation is accelerating, Barkin said during a virtual event hosted by the Peterson Institute for International Economics.

“I take real inflation and its impact seriously, and that is why I am in favor of normalizing policy as we are doing it,” he said.

(Report by Jonnelle Marte. Edited in Spanish by Javier Leira)

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