Fed Kocherlakota Suggest suggests holding rates until employment above 5.5 percent

Kocherlakota, one of 19 U.S. monetary policymakers and a known hawk, suggested the Fed should keep rates low until the jobless rate drops to 5.5 percent.

Though that would likely take four or more years, given the nation’s current 8.1 percent jobless rate, he said the U.S. central bank should keep its vow as long as inflation expectations stay under control.

via CNBC

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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