SANTA ANA PUEBLO, NM – U.S. interest rates should rise to forestall future price pressures, Cleveland Fed President Sandra Pianalto said on Friday, while conceding that inflation did not pose a major threat now.
Pianalto’s take on current inflation was echoed by St. Louis Fed chief William Poole and Dallas Fed president Robert McTeer in separate appearances.
“As the economy continues to expand, we can continue to withdraw our policy accommodation so that we do not unintentionally promote an inflationary environment down the road,” Pianalto told an Ohio bankers’ meeting in New Mexico.
“Our economy no longer requires the substantial amount of policy accommodation that it did until relatively recently,” said the Cleveland Fed chief, a voting member of the central bank’s policy-setting committee this year.
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