(Reuters) - Inflation is too low and the Federal Reserve is looking for evidence that inflation will return to a 2 percent target, an influential Fed official said on Monday, adding that the strong dollar should not derail U.S. economic momentum.
“Inflation is too low. I want to have some reason for confidence that it is coming back to 2 percent,” Fed Governor Jerome Powell said on Bloomberg TV.
The stronger dollar “will weigh a little bit on our exports and it will certainly in the short-term hold inflation down through import prices, so it might be a slight headwind but I don’t see it stopping the momentum” in the economy, he added.
Reporting by Jonathan Spicer; Editing by Steve Orlofsky