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- Minneapolis Federal Reserve Bank President Narayana Kocherlakota is open to cut interest rate
Minneapolis Federal Reserve Bank President Narayana Kocherlakota is open to cut interest rate
Minneapolis Federal Reserve Bank President Narayana Kocherlakota repeated on Thursday that he was open to cut interest rate.
"I don't see raising the target range for the fed funds rate above its current low level in 2015 or 2016 as being consistent with the pursuit of the kind of labour market outcomes that we are charged with delivering. I would be open to the possibility of reducing the fed-funds target range even further, as a way of producing better labour market outcomes," he said.
Kocherlakota pointed out that the slow pace of the job creation is caused by the end of the Fed's asset-buying programme.
"We would typically expect that such a change in monetary policy should affect the economy with a lag of about 18 to 24 months. Viewed through this lens, the slow rate of labour market improvement in 2015 is not all that surprising," Minneapolis Federal Reserve Bank president said.
Kocherlakota is not a voting member of the monetary-policy-setting Federal Open Market Committee (FOMC) this year, and will leave his post at the end of the year.
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