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Fed's Lacker says should be cautious about tweaking forward guidance

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(Globalpost/GlobalPost)

ASHEBORO, North Carolina (Reuters) - The U.S. Federal Reserve should be cautious about making any changes to its pledges to keep interest rates low because it could lose the trust of the public, a top Fed official said on Thursday.

"If you go changing what you're saying about how you're likely to behave from time to time, you could erode people's confidence that you're going to follow through on what you say you're going to do," Richmond Federal Reserve President Jeffrey Lacker told reporters.

"We ought to be really cautious about tweaking the forward guidance apparatus."

(Reporting by Jason Lange; Editing by Krista Hughes)

http://www.globalpost.com/dispatch/news/thomson-reuters/131121/feds-lacker-says-should-be-cautious-about-tweaking-forward-guid