June 18 (Reuters) - The U.S. central bank should stick to its 2% inflation target rate because raising it would undermine the public's grounded expectations, St. Louis Federal Reserve President Alberto Musalem said on Tuesday.
"It is my view that if we began to change the inflation target, it's going to muddy the waters and folks will not be able to form expectations about long-term inflation ... and we'll lose an anchor of stability," Musalem said during a question-and-answer session following a speech in St. Louis. "It's not a useful or timely idea to do that because we've just experienced the benefits of not doing so." (Reporting by Lindsay Dunsmuir; Editing by Paul Simao)
