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.
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