Focus on US unemployment because inflation is in check, Fed doves say

BOSTON, April 13 | Sat Apr 13, 2013 1:14pm EDT

BOSTON, April 13 (Reuters) - A dovish Federal Reserve policymaker on Saturday highlighted the U.S. central bank's good record on maintaining average inflation close to its 2-percent target, arguing the Fed needs to stay focused on accommodative policies despite some outsized fears over future inflation.

Chicago Fed President Charles Evans, in a speech, said inflation pressures look low now, and the Fed's easy policies have helped slowly move the U.S. unemployment rate toward 5.5 percent, which he called a sustainable level.

Speaking alongside Evans, Minneapolis Fed President Narayana Kocherlakota, a fellow dove, argued that a balanced policy approach would allow inflation to deviate somewhat from its 2-percent goal in order to lower U.S. unemployment.

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