Fed’s Kocherlakota Says Oil Price Drop Benefits US

The drop in oil prices is putting money in consumers’ pockets and is “a good thing, basically” for the U.S. economy, Minneapolis Fed President Narayana Kocherlakota said at a town hall at his bank’s headquarters.

At the same time, he said, the oil price decline will put downward pressure on drilling and on production in North Dakota, where the local economy has been experiencing an oil-driven boom for the past several years.

Kocherlakota also said he believes the U.S. economy can continue to grow even if the world economy weakens, but reiterated his view that the biggest challenge for U.S. growth is whether the Fed will be patient enough before raising rates, a move that could potentially choke off the recovery.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza