President of the Federal Reserve Bank of Minneapolis, Narayana Kocherlakota, speaking at Stanford today on the Bakken oil boom.
Comments on the wires from his speech:
- “My inflation outlook could rise”
- Says his views are driven by data
- “If so, my preferred date of interest rate ‘lift-off’ would come forward in time – possibly into next year.”
- Says that a declining rate of unemployment alone should not prompt a rate hike unless it leads to unduly high inflationary pressures, and that “Despite recent and anticipated falls in the unemployment rate, I don’t see such pressures at this time”
- Said that inflation won’t reach the 2% goal until 2018
Kocherlakota is a very dovish member of the FOMC. Last month he was the lone dissent at the FOMC meeting – saying that low inflation and signs that inflation expectations are falling should prompt the Fed to continue its monetary stimulus.
