Fed’s Fischer Says U.S. Inflation Still Too Low

17-Jul (Wall Street Journal) — Federal Reserve Vice Chairman Stanley Fischer said Friday U.S. inflation is still too weak and the central bank must ensure it moves up gradually to its 2% target.

During a question-and-answer session at the U.S. Chamber of Commerce, Mr. Fischer said he never thought he would encounter this problem as a policy maker, since for much of the last few decades any worries about inflation tended to be about prices picking up too quickly.

“Inflation is too low, we need to get it back up to 2%,” Mr. Fischer said in response to questions from Chamber of Commerce head Tom Donohue. “That’s why we’re keeping interest rates low, to encourage investment” and growth, he said.

[source]

PG View: If there is a “need” to get inflation back to 2% . . . raising rates is not the way to do it.