Minneapolis Fed chief Narayana Kocherlakota spoke on monetary in Evenstion, Illionois yesterday.
As it was expected his speech was overly dovish, maintaining his stance seen previously. Kocherlakota is against rates hikes as he see no apparent inflation pressure, with measures staying well below 2% target.
In his opinion the long-term equilibrium rate for Fed rate has shifted lower, proving there’s still time to postpone the liftoff. Speech delivered by Minneapolis Fed chief was the last ahead of the 17th September rates announcements and leaves market guessing in which direction Fed will decide to go.
It’s worth to note, that although Kocherlakota is top dove among US central banker, he is not a voting member in FOMC, furthermore he will be stepping down as Minneapolis Fed chief at the end of 2015.