The Federal Reserve could reduce the pace of its bond-buying stimulus despite a government shutdown that is preventing the release of key economic data, Richmond Fed President Jeffrey Lacker said Friday.
"We won't be flying blind," Lacker said, pointing to other types of economic reports. "It doesn't help. It'll slow us down a bit."
Also Friday, Minneapolis Fed President Narayana Kocherlakota said the Fed should do "whatever it takes" to drive down U.S. unemployment, even if this means courting concerns of another asset price bubble, or inflation that pops temporarily above its 2-percent goal.
"The labor market remains disturbingly weak. The good news is that, with low inflation, the FOMC has considerable monetary policy capacity at its disposal with which to address this problem," said Kocherlakota, referring to the policy-setting Federal Open Market Committee.
His comments closely followed a speech he gave last week.
"Doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place—and possibly providing more stimulus," Kocherlakota said in prepared remarks.