In his six years as president of the Minneapolis Federal Reserve, Narayana Kocherlakota became famous for his most unusual transformation from a leading hawk to the biggest dove on the central bank’s policy committee.
Now, as an economics professor at the University of Rochester, Kocherlakota continues to think the central bank is being too hasty to tighten monetary policy.
In an interview with MarketWatch, Kocherlakota said more jobs would be created if the Fed delays tightening policy.
Kocherlakota said he doesn’t think that the labor market is at full employment, and doubts reports that businesses are having trouble finding workers. If there was a labor shortage, wage pressure and inflation would not be so tame, he said.
The Fed seems to be still on track for a June rate hike despite the weak job report and the soft inflation data. You think this is a mistake. Why?