U.S. News

Fed's Lacker: Low Inflation Is Good for Employment


Central banks should only try to minimize unemployment by keeping inflation at bay, Richmond Federal Reserve President Richard Lacker said on Wednesday.

"The best way of contributing to maximum employment growth is to keep inflation low and stable," Lacker said in answer to audience questions following a speech.

He added that having an explicit inflation target was entirely consistent with the Fed's mandate.

Asked about specific inflation measures, Lacker said he favored the personal consumption expenditures index over consumer prices, pointing to flaws in how the latter is calculated.