Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the Fed’s record stimulus hasn’t pushed down the real interest rate enough to meet its mandate to achieve price stability and full employment.
Federal Reserve Bank of Chicago President Charles Evans said the U.S. job market is “doing better” thanks to record policy stimulus, while adding that he wants to see employment gains continue through the summer.
Debate among Federal Reserve policy makers is shifting away from the timing of a reduction in bond buying to the need to extend record stimulus as inflation cools and 11.7 million Americans remain jobless.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the Fed should do more to spur economic growth by reducing the threshold for consideration of a policy tightening to a 5.5 percent unemployment rate.
Wall Street’s biggest bond dealers see little chance the Federal Reserve will slow the pace of debt purchases designed to boost economic growth before the fourth quarter, even as policy makers face calls to curb the buying.