Fed's Lockhart says inflation will be "easily recognizable" – Reuters

  Fed's Lockhart says inflation will be "easily recognizable" – Reuters

U.S. inflation is under control and is going to stay that way because the Federal Reserve will "easily" spot the conditions that could erode price stability, and has the tools to tighten policy when needed, a top U.S. central banker said on Saturday.
Atlanta Federal Reserve President Dennis Lockhart acknowledged that inflation expectations might be fanned by rapid credit growth as the economy picked up steam, as a result of the aggressive actions taken by the central bank.
"That chemistry is not at work today," he told a panel on fiscal policy at The University of Iowa School of Law, in Iowa City. "I'm confident those improving conditions will be easily recognizable and the committee has a variety of tools to counter inflationary pressures with tightening measures."
The Fed has held interest rates near zero since late 2008 and tripled the size of its balance sheet to around $3 trillion through massive bond purchases aimed at holding down longer-term borrowing costs to boost investment and hiring.