US Federal Reserve is allowed to continue raising its benchmark short-term interest rate at a " deliberate" pace as inflation is under control, the Washington Post quoted a top Fed policymaker as saying Friday.

"Inflation has remained reasonably well contained," Anthony M. Santomero, president of the Federal Reserve Bank of Philadelphia, said after a speech to the National Economics Club on Thursday.

When asked whether the Fed had fallen "behind the curve" in fighting inflation, Santomero said, "Clearly, no."

The Fed is "moving in a deliberate manner toward a more neutral rate," Santomero said, referring to actions designed to lift the benchmark rate to a level that would neither stimulate or slow economic growth.

Santomero's comments indicated he feels no need to pick up the pace of rate increases now, according to the newspaper.

Excluding those for volatile food and energy items, consumer prices have risen just 1.6 percent in the past year, according to the Fed's preferred measure. That's safely within his comfort range of one to two percent, Santomero said.

But, he noted, more businesses are finding it easier to raise prices, and the economy should enjoy "robust" growth this year, assuming oil prices do not spike further. As a result, the Fed must remain vigilant on inflation.

"Gradualism has a role to play in monetary policy, but not at the expense of falling behind the curve," Santomero said.

The Fed raised the federal funds rate, the rate charged between banks on overnight loans, to 2.75 percent last month from 2.5 percent. It was the seventh quarter-percentage-point increase since last June.

Source: Xinhua