The Federal Reserve may need to be willing to let inflation rise above its 2% target to reduce “quite elevated” levels of unemployment, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said Wednesday.

In response to an audience question following a speech in Minot, N.D., on central bank structure, the official noted the central bank has mandates both to keep prices contained and to promote job growth, and he noted there could sometimes be tradeoffs when there are large imbalances at play.

“In a context, in a world, where unemployment is as high as it is,” allowing inflation to tip over the current central bank target of 2% “could well be part of an appropriate policy,” Kocherlakota said. The central bank may have to “give a little bit on the inflation front to do better on the employment front,” although importantly, the central banker didn’t predict this scenario will come to pass.