Kocherlakota says Fed's new guidance creates uncertainty
The head of the Minneapolis Fed was the only FOMC member to vote against this week's decision
Narayana Kocherlakota, the president of the Federal Reserve Bank of Minneapolis who voted against the Federal Open Market Committee's (FOMC) decision this week to update its forward guidance, today offered an explanation of his dissent.
Lamenting the switch from a quantitative approach, which saw the Fed tie guidance of the federal funds rate to a 6.5% unemployment ‘threshold', to a qualitative one taking into account a series of indicators, Kocherlakota said that the change creates uncertainty
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