Correspondent, Chicago
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Nov 18, 2014

Fed is creating risks to itself on credibility: Kocherlakota

18 (Reuters) – The Federal Reserve is
risking its credibility by not acting aggressively enough to
bring inflation back up to its 2 percent target quickly, a top
U.S. central banker said on Tuesday.

“I think we are creating risks for ourselves on the
credibility front,” Minneapolis Federal Reserve President
Narayana Kocherlakota told reporters after a talk to the St.
Paul Rotary Club. “If inflation continues to be persistent below
2 percent, people’s beliefs that it will get back to 2 percent
will start to erode, so then their belief about what our target
is for inflation will start to slide downwards.”

Nov 18, 2014
    • About Ann

      "Coverage includes Federal Reserve regional banks, U.S. monetary policy, interest-rate futures markets, and financial exchanges and clearinghouses serving the derivatives marketplace, including CME Group."
      Joined Reuters:
      2010
      Languages:
      English, Japanese
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