Fed’s Kocherlakota: ‘This Nation Needs More Inflation’

A top Federal Reserve official said he believes U.S. interest rates are too high, and had no "good answer" when asked why the Fed is reducing its efforts to push borrowing costs down.
"Interest rates are not low enough," Minneapolis Federal Reserve President Narayana Kocherlakota said at a Town Hall meeting in Montana, citing subdued inflation and "unacceptably high" unemployment as evidence.
The fact that the Fed has not been able to achieve its twin objectives of maximum employment and 2-percent inflation suggests the need for lower rates, he said.

This post was published at Money News

 

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