The Federal Reserve should not raise interest rates until at least next year, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said on Tuesday. Kocherlakota, in remarks prepared for delivery to a town hall at Southwestern Minnesota State University in Marshall, Minnesota, held to a position he has staked out in earlier speeches.
Despite improvement in the job market, he said inflation is expected to remain below the Fed’s 2 percent annual target “for several years,” giving the United States room to grow and allowing further improvement in employment. The Fed “can best achieve its objectives by keeping the fed funds rate target at its current level during this calendar year,” Kocherlakota said.
Kocherlakota is not a voting member this year on the central bank’s policy-setting Federal Open Market Committee.