Key US Democrat warns on inflation target idea

It would be a "terrible mistake" for the U.S. Federal Reserve to adopt any form of inflation target to guide policy, a senior Democratic lawmaker was quoted as telling the Financial Times on Tuesday 19 February.

Such a target "would come at the expense of equal consideration of the other main goal, that is employment," U.S. House of Representatives Financial Services Committee Chairman Barney Frank said in an interview in the FT's Tuesday edition.

Fed Chairman Ben Bernanke "has a statutory mand