Modest U.S. growth will keep inflation in check and means the Federal Reserve should ease monetary policy further to bring the rate of U.S. unemployment down at a faster pace, a senior U.S. central banker said on Wednesday.
Minneapolis Fed Bank chief Narayana Kocherlakota, one of the more dovish members of the Fed’s policy-setting committee, also repeated his view that the best way to boost the economy was to lower the Fed’s jobless rate threshold on interest rate guidance to 5.5 percent.
“My outlook for unemployment and my outlook for inflation both point to a need for more accommodation than is currently being provided by the FOMC,” he said in prepared remarks to local business groups in Edina, Minnesota, referring to the Federal Open Market Committee.
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