Narayana Kocherlakota, Columnist

The Fed Gets an Attitude Adjustment

Now that officials recognize the economy's vulnerability, they need to act by lowering interest rates.

June 21, 2016 at 11:00 AM UTC

Narayana Kocherlakota is a Bloomberg Opinion columnist. He is a professor of economics at the University of Rochester and was president of the Federal Reserve Bank of Minneapolis from 2009 to 2015.

Facing the facts.
Photographer: Nicky Loh/Bloomberg

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One of the officials responsible for setting interest rates at the U.S. Federal Reserve -- St. Louis Fed President James Bullard -- has signaled a big change: Previously an outspoken advocate for raising rates aggressively, he now thinks the economy is so weak that a mere quarter-percentage-point increase would be enough for the foreseeable future.

Although his re-evaluation of the economic situation makes sense, I think his prescription should be more ambitious.