(Reuters) – Inflation expectations are currently stable and well-anchored and there is a low risk of inflation escalating in the near future, Richmond Federal Reserve Bank President Tom Barkin said Thursday.
The Fed’s new monetary policy framework may help to modestly boost inflation expectations, Barkin said in remarks prepared for a virtual forum. But the central bank has the freedom to raise rates if financial stability risks appear or if inflation rises too quickly, Barkin said.
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)
