Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, who has backed the Fed’s $85 billion in monthly bond buying, said the central bank’s outlook for inflation and unemployment calls for more accommodation.
The Federal Open Market Committee’s “own forecasts suggest that it should be providing more stimulus to the economy, not less,” Kocherlakota said in a speech yesterday in La Crosse, Wisconsin. He doesn’t vote on monetary policy this year.
The FOMC at a Sept. 17-18 meeting will probably taper its bond buying, according to 65 percent of economists surveyed by Bloomberg last month. Fed Chairman Ben S. Bernanke and his colleagues have pledged for almost a year to press on with purchases until they see substantial improvement in the labor market including unemployment, which was 7.4 percent in July.
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