One of the Federal Reserve’s most dovish policymakers on Tuesday welcomed the recent drop in U.S. unemployment but warned the labor market has a long way to go until the U.S. central bank has reached its goal.
Sticking to his guns on the need for sustained policy accommodation, Narayana Kocherlakota, president of the Minneapolis Fed, said central bankers must also look through “transitory” changes in inflation like recent firming.
The speech, largely a repetition of one he gave here in May, pushed back against several months of better-than-expected jobs growth and a welcome, albeit measured, rise in prices. The data had some Wall Street economists predicting the Fed would raise interest rates earlier than previously thought.
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