Former Fed Chairman Ben Bernanke told CNBC on Monday he sees no reason why central bank policymakers should rush to increase interest rates.
With the Fed considering a rate hike that would be the first in nine years, he said it’s not evident that monetary policy is too easy because inflation is so low and full employment is only starting to emerge.
“[The Fed] has a 2 percent inflation target. It needs to get inflation up to that target,” said Bernanke. “Easy money is justified by the need to get inflation up to the target.”
In a wide-ranging interview on “Squawk Box,” he also addressed criticism that the Fed keeps moving the goal posts for raising rates.
“As a form of forward guidance [in 2012], we promised we would not tighten until at least, at least until we got to 6.5 percent [unemployment report]. We didn’t say we would tighten when we got to 6.5 percent,” he said.