The Minneapolis Fed’s Narayana Kocherlakota was one of three dissenters at the Federal Reserve Open Markets Committee earlier this month.However he just expressed support for Bernanke’s program.
“I believe that undoing this commitment in the near term would undercut the ability of the Committee to offer similar conditional commitments in the future – and this ability has certainly proved very useful in the past three years,” he told state treasurers today (via Marketwatch).
While not wanting to undo the commitment o keeping ultra-low rates through the middle of 2013, Kocherlakota repeated that it was a mistake to give the pledge in the first place.
He also argued against further easing, noting that unemployment was lower than when QE2 was launched: “[D]on’t ease further if you’re doing better on your mandates.”
The August FOMC minutes come out at 14:00 ET today. Here’s a preview >