Fed's Barkin: Reaching 2% target important to Fed's credibility

The U.S. Federal Reserve needs to defend the 2% inflation target to ensure its own credibility remains intact with the public, Richmond Fed president Thomas Barkin said on Tuesday.

"We have one big weapon and that is credibility," Barkin said in comments to the Danville Pittsylvania County Chamber of Commerce. "There is nothing magic about 2 except that when you set that as a target you probably want to achieve it."