Fed’s Kocherlakota: ‘I regret my lack of persuasiveness’ on rates

Minneapolis Federal Reserve President Narayana Kocherlakota on Thursday said he was disappointed that he has been unable to convince his colleagues to keep monetary policy accommodative for longer.

“I regret my lack of persuasiveness. I think we would have better policy if I were more persuasive than I have been able to be,” Kocherlakota told reporters after his speech here.

If the Fed raises rates this year, as most of his colleagues expect, “things could go okay, but you are creating a risk of further declines in where market-based inflation expectations are, basically to the credibility of our inflation target, and I think you are creating downside risks our pursuit of our employment mandate.”