Priority to the fight against inflation

The American central bank (Fed) should normally focus on fighting inflation as it might otherwise create more serious problems in the future, said the Fed chairman of St. Louis, William Poole. "I have often said that the Monetary Policy Committee should give priority to the inflation target, because if inflation is growing while the FOMC is focused on the fight against recession, the result will be delayed recession but not to avoid it, "he assured in introductory notes in a speech in New York. "And most likely, postponed the recession in an environment of rising inflation and rising inflation expectations will be worse than mild recession avoided in the short term," he added. Mr. Poole, who does not vote for the rest of the FOMC this year, is known for his orthodox views on the fight against inflation. He was the only member of the Fed to vote against the decline in interest rates in January.