Should prices remain stable, the fed funds rate target should be kept "extraordinarily low" until the jobless rate drops under 5.5%, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said Thursday.

The Federal Open Market Committee can add stimulus to the economy by including in its statement "a description of the economic conditions that would lead the Committee to contemplate the initial increase in the fed funds rate above its currently extraordinarily low level," he said, according to prepared text of a speech in Ironwood, Mich.,released by the Fed.

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