Correspondent, Chicago
Ann's Feed
Mar 22, 2014
Mar 22, 2014

As Fed eyes eventual exit, policymakers spar over interest rates

WASHINGTON (Reuters) – Two top Federal Reserve policymakers staked out diametrically opposite views on Friday about whether the U.S. central bank should be willing to risk higher unemployment in order to head off a potential financial crisis.

One Fed Board member, Jeremy Stein, said that it should. The other, Minneapolis Fed President Narayana Kocherlakota, disagreed.

Mar 21, 2014

Fed’s Kocherlakota: Don’t raise rates to head off possible crisis

WASHINGTON, March 21 (Reuters) – Raising interest rates to
head off a potential financial crisis is simply not worth it, a
top Federal Reserve official said on Friday.

With economists forecasting very low odds of a crisis
anyway, there is “little benefit to reducing or eliminating the
probability of a crisis” with tighter monetary policy, Narayana
Kocherlakota, president of the Minneapolis Federal Reserve Bank,
said in slides prepared for presentation to a conference in
Washington.

Mar 21, 2014

Kocherlakota, Fed’s lone dissenter, blasts new rate guidance

WASHINGTON, March 21 (Reuters) – The Federal Reserve should
have promised to keep rates near zero until U.S. unemployment
falls below 5.5 percent, as long as inflation and financial
stability risks are contained, said the lone dissenter to the
Fed’s policy decision this week.

By instead dropping its pledge to keep rates low until the
jobless rate reaches a more healthy level, the Fed is sending
the wrong message on both inflation and jobs, Minneapolis
Federal Reserve Bank President Narayana Kocherlakota said in
remarks released on Friday.

Mar 21, 2014
Mar 21, 2014
Mar 21, 2014

Fed’s Kocherlakota blasts new rate guidance

WASHINGTON (Reuters) – The Federal Reserve should have promised to keep rates near zero until U.S. unemployment falls below 5.5 percent, as long as inflation and financial stability risks are contained, said the lone dissenter to the Fed’s policy decision this week.

By dropping the Fed’s pledge to keep rates low until the jobless rate reaches a more healthy level, the U.S. central bank is sending the wrong message on both inflation and jobs, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said in remarks released on Friday.

Mar 21, 2014

Fed’s Kocherlakota blasts new rate guidance, wants low rates for longer

WASHINGTON, March 21 (Reuters) – The Federal Reserve should
have promised to keep rates near zero until U.S. unemployment
falls below 5.5 percent, as long as inflation and financial
stability risks are contained, said the lone dissenter to the
Fed’s policy decision this week.

By dropping the Fed’s pledge to keep rates low until the
jobless rate reaches a more healthy level, the U.S. central bank
is sending the wrong message on both inflation and jobs,
Minneapolis Federal Reserve Bank President Narayana Kocherlakota
said in remarks released on Friday.

Mar 21, 2014
Mar 21, 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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