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13 Apr 2015
‘It would be a mistake to raise the fed funds rate in 2015’ – Fed’s Kocherlakota
FXStreet (Mumbai) - The Fed should keep rates near zero until the second half of 2016 to help the economy fully recover from the Great Recession, Narayana Kocherlakota, the head of the Minneapolis Fed said on Friday.
Key Quotes:
"I anticipate that it would be appropriate for the FOMC to defer the initial interest rate increase until the second half of 2016,"
"The FOMC can only achieve its congressionally mandated price and employment goals by being extraordinarily patient in reducing the level of monetary accommodation. Under my current outlook, I continue to believe that it would be a mistake to raise the target range for the fed funds rate in 2015."
Key Quotes:
"I anticipate that it would be appropriate for the FOMC to defer the initial interest rate increase until the second half of 2016,"
"The FOMC can only achieve its congressionally mandated price and employment goals by being extraordinarily patient in reducing the level of monetary accommodation. Under my current outlook, I continue to believe that it would be a mistake to raise the target range for the fed funds rate in 2015."