The Traderszone Network

Published in TZ Latest News 7 April, 2015 by The TZ Newswire Staff

Fed should not raise rates until late 2016: Kocherlakota

Minneapolis Fed President Narayana Kocherlakota on Tuesday laid out a case for waiting until the second half of 2016 to start raising interest rates, and to then raise them gradually to just 2 percent by the end of 2017. His remarks afterwards to reporters suggest he is increasingly worried that market expectations for nearer-term rate rises, fueled by comments from many of Kocherlakota’s Fed colleagues, could knock the wind out of the economic recovery. “That conversation (about raising rates) in and of itself is a tightening of policy,” Kocherlakota said.

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