Fed’s Kocherlakota believes in Continued Stimulus

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.

Bloomberg

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Stuart McPhee

Stuart McPhee

Senior Currency Technical Analyst at Market Pulse
Stuart McPhee has nearly 20 years’ experience as a private trader and he specializes in technical market analysis of major currency pairs. He is the author of several bestselling trading books, most recently the fourth edition of his popular book “Trading in a Nutshell” (John Wiley), and he contributes articles to daily newsletters and blogs. He produces articles and videos on the how-tos of technical trading. Living in Melbourne, Australia, Stuart speaks at conferences and events worldwide.
Stuart McPhee