Kocherlakota Sees Record Fed Stimulus as `Too Tight'

Jan. 10 (Bloomberg) -- Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the central bank may not be providing enough accommodation given his outlook for prices and the job market.

* “Inflation will run below the Fed’s target of 2 percent

over the next two years and the unemployment rate will

remain elevated,” Kocherlakota said in the text of remarks

prepared for a speech today in Minneapolis. “If anything,

monetary policy is currently too tight, not too easy.” * “I expect unemployment to continue to fall only slowly,

down to around 7.5 percent in late 2013 and around 7 percent

in late 2014,” Kocherlakota said * NOTE: Minneapolis Fed president was early advocate for tying

the Fed’s zero-rate policy to economic data, first calling

for the change in a speech in Sept.

For Related News and Information: Top Stories: TOP<GO> Federal Reserve links: FED <GO> Credit crunch page: WWCC <GO> Fed balance-sheet figures: ALLX FARW <GO> Government relief programs: GGRP <GO> Fed monetary policy: FOMC <GO> Fed Web links: FRBM <GO> Central bank rates worldwide: CBRT <GO>

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