According to the head of the Federal Reserve Bank of Minneapolis Narayana Kocherlakoty, increase in U.S. interest rates even once by 50 basis points would leave monetary policy is very soft. "Core inflation at 1.5% is still significantly below the target set by the Fed at 2%. Accordingly, building on the findings of our research group, we can say that raising rates by 50 basis points while keeping the balance unchanged FED will meet real interest rates at a level of -1.5%. This situation can only be described as very soft policy ", - said at a news conference in Minneapolis Fed, Mr. Kocherlakota.
Friday, May 6, 2011
The head of the Federal Reserve Bank of Minneapolis do not mind to raise rates by 50 basis points
According to the head of the Federal Reserve Bank of Minneapolis Narayana Kocherlakoty, increase in U.S. interest rates even once by 50 basis points would leave monetary policy is very soft. "Core inflation at 1.5% is still significantly below the target set by the Fed at 2%. Accordingly, building on the findings of our research group, we can say that raising rates by 50 basis points while keeping the balance unchanged FED will meet real interest rates at a level of -1.5%. This situation can only be described as very soft policy ", - said at a news conference in Minneapolis Fed, Mr. Kocherlakota.
