August 1, 2014 / 12:11 PM / 3 years ago

Fed should not let economy overheat, Fisher tells CNBC

(Reuters) - It would be dangerous for the Federal Reserve to allow the economy to overheat in order to push unemployment down further and faster, a top Fed official said on Friday.

“I don’t buy that argument that we should for example run an overheated economy and tolerate inflation highly above 2 percent, which is our target, in order to increase employment, because eventually it gets out of hand,” Dallas Federal Reserve Bank President Richard Fisher said on CNBC. “You can’t overshoot and then try to correct” on inflation.

“We’ve had experience with this before and it’s a dangerous place to go, in my opinion.”

Reporting by Ann Saphir Editing by W Simon

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