The Traderszone Network

Published in TZ Latest News 4 September, 2014 by The TZ Newswire Staff

U.S. interest rates are too high: Fed’s Kocherlakota

A top Federal Reserve official on Thursday said he believes U.S. “Interest rates are not low enough,” Minneapolis Federal Reserve President Narayana Kocherlakota said at a Town Hall meeting in Montana, citing subdued inflation and “unacceptably high” unemployment as evidence. The fact that the Fed has not been able to achieve its twin objectives of maximum employment and 2-percent inflation suggests the need for lower rates, he said. The Fed has kept short-term interest rates near zero since December 2008 in an effort to pull the economy from its worst recession in decades.