Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis speaking on his outlook for the US economy and monetary policy in 2015:

  • Says again that he doesn’t favour raising rates in 2015
  • Will take a few years before inflation back to 2%
  • Federal Reserve underperformed on dual mandate for 3 years
  • Lack of Federal Reserve response is further credibility risk
  • Federal Reserve hasn’t acted on inflation expectations drop
  • Federal Reserve eroding credibility by missing inflation goal

There isn’t much to surprise from Mr. K. here …. he is a well-known policy dove and is repeating what he has said many times previously

Note – Kocherlakota is not a voting member of the FOMC in 2015

Full text of his speech: Goal-Based Monetary Policy Report

There will be more from Kocherlakota later – he is to take audience questions