Fresident of the Federal Reserve Bank of Minneapolis Narayana Kocherlakota speaking ‘On the objectives of monetary policy’. The speech is from a prepared text and he will be taking audience questions after.


  • Fed can let inflation exceed 2% to lower the jobless rate
  • The Fed should link dual mandate to market stability
  • Inflation sub-2% too long may affect expectation
  • Financial stability risks not a policy issue now
  • Inflation sub-2% as much a problem as above 2%
  • Urges Fed adopt 2-yr benchmark for inflation goal
  • Says Fed should make 2% inflation goal symmetric

Kocherlakota votes on the FOMC this year

Kocherlakota Federal Reserve

These comments are from Kocherlakota’s prepared speech, he will be taking audience questions afterwards … so more to come from him.