FOMC Dissenter Says Fed Should Stick To Pledge

narayana kocherlakota minneapolis fed


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 >

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