Fed’s Kocherlakota: Drop in neutral rates adds to financial stability risks

FXStreet (Bali) – Minneapolis Federal Reserve President Kocherlakota (dovish), speaking in Seoul, said that the drop in neutral rates adds to financial stability risks, makes fed’s job harder.

Main headlines

Says raising inflation target could give the Federal Reserve policy ‘space’ to combat shocks

Higher inflation target could also mitigate financial stability risks
FOMC would need to weigh benefits of raising inflation target against costs

Minneapolis Federal Reserve President Kocherlakota (dovish), speaking in Seoul, said that the drop in neutral rates adds to financial stability risks, makes fed’s job harder.

(Market News Provided by FXstreet)