(Reuters) – The U.S. Federal Reserve’s new framework for managing monetary policy shows a “tolerance” for higher inflation, but not necessarily a full blown promise to engineer it, Kansas City Federal Reserve president Esther George.
“I interpret the revised consensus statement as a tolerance — and less as a promise to engineer — for inflation moderately above 2 percent for some time,” George said, adding her voice to the disparate views among Fed officials about how the new framework will be applied in practice. George also said she felt it was going to be important for the Fed to provide “more detailed” guidance on its asset purchases.
(Reporting by Howard Schneider; Editing by Chizu Nomiyama)
