Fed official floats pursuing higher inflation

A top Federal Reserve official on Monday floated the idea of raising the central bank’s inflation target, suggesting that the Fed might need to pursue higher inflation because of the low interest rates around the world.

John Williams, the president of the Federal Reserve Bank of San Francisco, wrote in a research letter published Monday that governments might need to change both monetary policy and spending programs to better “cope” with the fact that interest rates are likely to stay historically low.