By Michael S. Derby
WILLISTON, N.D.--A key U.S. central bank official said he is
comfortable with the idea of the central bank predicting very low
rates for some time to come, although he added he would prefer a
shorter-term view than the one now officially held by the central
bank.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota
told an audience in Williston, N.D., Thursday the Fed's decision to
offer a conditional pledge to keep rates very low until at least late
2014 is "a reasonable attempt" to provide guidance.
But Mr. Kocherlakota called any such action by the Fed a "forecast"
and not a commitment. He also said had it been entirely up to him, "I
would not have chosen to put that date as far out."
Mr. Kocherlakota isn't currently a voting member of the monetary
policy setting Federal Open Market Committee. His comments followed a
speech in which he defended the structure of the central bank system,
most notably the boards of directors that oversee the 12 regional
central banks.
Write to Michael S. Derby at michael.derby@dowjones.com
(END) Dow Jones Newswires
August 16, 2012 20:54 ET (00:54 GMT)
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