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9 Jan 2015
Raising interest rates in 2015 would retard US growth – Fed’s Kocherlakota comments
FXStreet (Mumbai) - Federal Reserve of Minneapolis President Narayana Kocherlakota highlighted in his speech that an increase in the central bank's borrowing costs in 2015 would have a negative impact on price growth.
The Fed's Kocherlakota subscribed to the view that the central bank should leave short-term borrowing costs near zero for a seventh year in a row, his main arguments for a delayed hike being falling US inflation and still-high unemployment.
As quoted by him,"Raising the target range for the fed funds rate in 2015 would only further retard the pace of the slow recovery in inflation."
The Fed's Kocherlakota subscribed to the view that the central bank should leave short-term borrowing costs near zero for a seventh year in a row, his main arguments for a delayed hike being falling US inflation and still-high unemployment.
As quoted by him,"Raising the target range for the fed funds rate in 2015 would only further retard the pace of the slow recovery in inflation."