Kocherlakota Says Fed Should Give Timetable on 2% Inflation Goal

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said policy makers should improve communications by saying how long they expect it will take for price increases to reach their target level.

The Federal Open Market Committee should consider “articulating a benchmark two-year time horizon for returning inflation to the 2 percent goal,” Kocherlakota, who votes on policy this year, said yesterday in a speech in Marquette, Michigan. He also said the Fed should detail how financial stability concerns affect policy.