Bullard: 'Good' to review Fed inflation framework but change needs proof

WASHINGTON (Reuters) - It would be good for the Federal Reserve to regularly review its inflation framework but any change would require conviction that a new set up would provide benefits over the current 2 percent target, St. Louis Fed President James Bullard said on Monday.

Several Fed policymakers have advocated a review of how the Fed sets its inflation target and "that is a good thing to do and I am hopeful the committee will go ahead and do it," Bullard said. But to change "you would have to get buy-in from the political side. You would have to get buy-in from the larger financial community."

 

(Reporting by Howard Schneider; Editing by Chizu Nomiyama)