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If inflation began to accelerate, Mr. Brock said he would worry.
In February inflation began to rise, reaching a high of 28.3% in August.
But once the underutilisation rate went below 10.7%, inflation began to increase.
The Fed's focus on inflation began in the late 1970s with the appointment of Paul A. Volcker as chairman.
Soon inflation began creeping up once again, as governments printed money to pay for higher wages and welfare.
Real wage growth did, however, return earlier this year, as pay rises increased and inflation began to wane.
Similar(23)
Will inflation begin to drift back up toward our target?
It would also leave the benefits freeze intact just as inflation begins to bite.
Central banks want companies to be bullish enough to invest and hire willing workers, but not so exuberant that inflation begins to pick up.
Simply to raise the cap on fees would exacerbate this problem, while allowing the value of fees to depreciate with inflation begins to deflate the problem away.
Once inflation begins to rise, the Federal Reserve is forced to crack down, raising interest rates to slow spending and bring prices under control.
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