16 Apr 2014
Fed's Kocherlakota: Concerned over low inflation, rates to rise gradually
FXStreet (Bali) - Fed's Kocherlakota is crossing the wires, via Reuters, saying that a better job needs to be done on letting people know 'the Fed has the economy's back'.
On monetary policy, Kocherlakota said "we can afford to stay accommodative as the recovery proceeds", adding that "I expect interest rates to rise gradually as recovery continues."
On inflation, Kocherlakota said that "if we see inflation rise rapidly, will raise rates rapidly in response", however, at the moment, he is more concerned that inflation is as low as it is, given the tools at Fed's disposal. Lastly, Kocherlakota said that "I am fully committed to doing whatever it takes to keep inflation close to 2 percent."
On monetary policy, Kocherlakota said "we can afford to stay accommodative as the recovery proceeds", adding that "I expect interest rates to rise gradually as recovery continues."
On inflation, Kocherlakota said that "if we see inflation rise rapidly, will raise rates rapidly in response", however, at the moment, he is more concerned that inflation is as low as it is, given the tools at Fed's disposal. Lastly, Kocherlakota said that "I am fully committed to doing whatever it takes to keep inflation close to 2 percent."