Fed's Pianalto warns against more easing (by Greg Robb)

WASHINGTON (MarketWatch) - The Federal Reserve should not try to accelerate the pace of growth through further asset purchases, said Sandra Pianalto, president of the Cleveland Federal Reserve Bank, on Monday. Further easing "could put the Fed's price stability objective at risk," Pianalto said in a speech to the economic-outlook conference in Marietta, Ohio. Inflation is likely to remain close to 2%, but the recent spike in gasoline prices could complicate the inflation picture if it persists, she said. At the same time, Pianalto signaled that she is not interested in starting an exit strategy. "Removing policy accommodation prematurely could risk breaking the momentum of the economy and risk disinflation, she said. Pianalto is a voting member of the Fed's interest-rate-setting committee this year.