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Kocherlakota Says Fed Should Consider Negative Interest Rates

  • Minneapolis Fed President says appropriate to wait for liftoff
  • Fed should facilitate continued improvement in labor market
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FOMC Minutes Show Officials Delayed Rate Hike Over Risks

The Federal Reserve should consider ways to make monetary policy more accommodative, including negative interest rates, said Minneapolis Fed President Narayana Kocherlakota.

"I don’t see raising the target range for the fed funds rate above its current low level in 2015 or 2016 as being consistent with the pursuit of the kind of labor market outcomes that we are charged with delivering," Kocherlakota said Thursday in remarks prepared for a speech in Mankato, Minnesota. "Indeed, I would be open to the possibility of reducing the fed funds target funds range even further, as a way of producing better labor market outcomes."