Kocherlakota says Fed's new guidance creates uncertainty
Narayana Kocherlakota, the president of the Federal Reserve Bank of Minneapolis who voted against the Federal Open Market Committee's (FOMC) decision this week to update its forward guidance, today offered an explanation of his dissent.
Lamenting the switch from a quantitative approach, which saw the Fed tie guidance of the federal funds rate to a 6.5% unemployment ‘threshold', to a qualitative one taking into account a series of indicators, Kocherlakota said that the change creates uncertainty
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Lagarde warns against excessive tightening
Eurozone inflation declined sharply in May from 7% to 6.1% and core inflation declined to 5.3%
Nigerian parliament lifts central bank financing limit
Central bank has lent government tens of billions as fiscal problems mount
Hank model reveals monetary non-neutrality
Inequality and zero lower bound suggest monetary policy can impact long-term real rates
Carbon pricing would have ‘limited impact’ on eurozone inflation, says paper
Inflation would rise less than 0.2% per year until 2025 and then decline, researchers say
ECB needs ‘persistence’ in tight policy, French governor says
Transmission is slow but rate should reach terminal level in summer, says Villeroy de Galhau
Governors weigh trade-offs between inflation and financial stability
Officials stress central bank independence is key to addressing these risks
EME central banks must keep policies tight, says IMF deputy
Gita Gopinath says “markets are probably too optimistic” about cost of lowering inflation
Bank of Mexico halts tightening cycle
Board says it will be necessary to keep rates unchanged “for an extended period”