Narayana Kocherlakota, Columnist

Fed Should Ease After U.K.'s Vote

It should start explaining how negative interest rates might work.

June 27, 2016 at 3:46 PM 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.

Where's the bottom?
Photographer: Spencer Platt

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Britain's vote to exit the European Union and the reaction in global markets offer important lessons for the Federal Reserve. It should be easing policy in the near term.

The outcome of the Brexit vote came as a big surprise to global markets. Over the past two trading days, we have seen large increases in sovereign debt prices and large declines in the value of the British pound.