MINNEAPOLIS/OSLO/NEW YORK (Reuters) – The Federal Reserve must be patient in deciding when to scale back bond purchases, top officials said on Friday, with one arguing it could wait “years” to lift interest rates and another suggesting it could tolerate inflation rising to 3 percent.
The dovish remarks, by Chicago Fed President Charles Evans, Minneapolis Fed chief Narayana Kocherlakota and New York Fed boss William Dudley, came as investors reviewed expectations on whether the Fed will begin to taper bond buying this year or next, after it unexpectedly decided last week to stand pat.
MINNEAPOLIS/OSLO (Reuters) – The Federal Reserve must be patient in deciding when to scale back bond purchases, two of its most dovish officials said on Friday, and one suggested that the central bank tolerate inflation as high as 3 percent to drive down unemployment.
The remarks by Chicago Fed President Charles Evans and Minneapolis Fed chief Narayana Kocherlakota came as investors review their expectations on whether the Fed will begin to taper bond buying this year or next, after the U.S. central bank unexpectedly decided to stand pat last week.
MINNEAPOLIS (Reuters) – The next chair of U.S. Federal Reserve will need to resist the temptation to wind down the central bank’s monetary stimulus in the face of rising criticism of the super-easy policies, a top Fed official said on Friday.
“The main job is going to be to keep accommodation in place for the next few years, even though there is going to be lots of hue and cry to stop providing that accommodation,” Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank, said in an interview with Reuters.