Fed’s Kocherlakota: ‘I regret my lack of persuasiveness’ on rates

Minneapolis Federal Reserve President Narayana Kocherlakota on Thursday said he was disappointed that he has been unable to convince his colleagues to keep monetary policy accommodative for longer.

“I regret my lack of persuasiveness. I think we would have better policy if I were more persuasive than I have been able to be,” Kocherlakota told reporters after his speech here.

If the Fed raises rates this year, as most of his colleagues expect, “things could go okay, but you are creating a risk of further declines in where market-based inflation expectations are, basically to the credibility of our inflation target, and I think you are creating downside risks our pursuit of our employment mandate.”

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.