A below-target inflation rate signals a significant economic problem, Minneapolis Fed president Narayana Kocherlakota said on Wednesday.
Kocherlakota, a voting member of the Fed's Open Market Committee, suggested the Fed could target an inflation rate above 2 percent to make up for the recent shortfall.
His comments come just minutes before the closely watched minutes of the last Fed meeting are released.
Last month Kocherlakota warnedthat his colleagues were letting the economy waste "lots of resources" by leaving inflation too low and unemployment too high.
This story is developing. Please check back for further updates.
Click here for the latest on the markets.