Narayana Kocherlakota, the president of the Minneapolis Federal Reserve, on Tuesday said the Federal Open Market Committee's (FOMC) communication can only be effective if it retains credibility.

Kocherlakota said Congress had mandated that the FOMC set monetary policy so as to promote the dual goals of price stability and maximum employment, and that while in the past some have seen an intrinsic conflict between the two goals, a more modern viewpoint shows there is relatively little tension