HELENA, Mont. — Minneapolis Federal Reserve Bank president Narayana Kocherlakota Thursday said if core inflation begins to accelerate he would favor thinking about raising interest rates, but that it is “not appropriate” to raise them now because core inflation is still “very low.”
Kocherlakota, a voting member of the Fed’s policymaking Federal Open Market Committee this year, said he will be watching inflation very closely.
Kocherlakota, answering questions following a speech to the Hometown Helena group in Montana, also said the Fed must “eventually” sell assets, but gave no sense of timing.
Kocherlakota did not sound like he is in any hurry to tighten monetary policy, noting that employment gains are unlikely to come as rapidly as the Fed would like, and adding that core inflation does not pose a threat at this time.