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6 May 2015
Fed funds rate target should be kept at its current level in 2015 – Fed’s Kocherlakota
FXStreet (Mumbai) - The US Federal Reserve should not raise interest rates this year due to soft economic results in the first quarter, Minneapolis Federal Reserve Bank President Narayana Kocherlakota told an audience at a public forum at Southwestern Minnesota State University on Tuesday.
Key Quotes:
The central bank "can best achieve its objectives by keeping the fed funds rate target at its current level during this calendar year,"
"Once those [figures] are folded into estimates for real GDP, we’re probably going to be in a negative situation in the first quarter, meaning that real GDP actually contracted in the first quarter,"
"The data on inflation and employment show that we could produce and consume more as a country by utilizing more of our available human resources,"
"Monetary policy can--and should--be used to help make that desirable outcome happen."
Key Quotes:
The central bank "can best achieve its objectives by keeping the fed funds rate target at its current level during this calendar year,"
"Once those [figures] are folded into estimates for real GDP, we’re probably going to be in a negative situation in the first quarter, meaning that real GDP actually contracted in the first quarter,"
"The data on inflation and employment show that we could produce and consume more as a country by utilizing more of our available human resources,"
"Monetary policy can--and should--be used to help make that desirable outcome happen."