Comments from Kocherlakota:
- It would be a mistake to raise rates in 2015
- Fed should be 'extraordinarily patient'
- Expects inflation to stay below 2% until 2018
Kocherlakota is a super-dove so the comments don't come as a surprise and there has been no reaction in the market. He's a non-voter and he also announced that he's retiring so he's pretty much this now:
In some ways the speech is a bit less worrisome than usual. He's more upbeat on the labor market, saying there is no longer evidence American labor market is trapped in some kind of dismal "new normal" in wake of Great Recession.
"By some key metrics, the labor market improved more in 2014 than it had in almost 20 years. Yet, by these same metrics, we would need to see at least three more years like 2014 for labor market conditions to return to their 2006 levels," he said.
