FINANCIAL TIMES: The US Federal Reserve should keep interest rates low until unemployment drops below 5.5 per cent, provided that inflation stays under control, according to a senior Fed official.
The comments, which came in a speech by Narayana Kocherlakota, president of the Minneapolis Fed, mark a big shift by a policy maker who opposed monetary stimulus last year.
His remarks suggest that the balance of the Federal Open Market Committee has shifted towards easier policy and the idea of setting a numerical condition for a rise in interest rates is gaining momentum…. (more)
