Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said he expects the inflation rate to remain below 2 percent for the next four years.
Kocherlakota, who votes on policy this year, commented in remarks at Northern Michigan University in Marquette, Michigan.
Kocherlakota, 50, has since 2012 sided with colleagues on the Fed’s rate-setting committee who favor sticking with an accommodative monetary policy aimed at achieving maximum employment.
They repeated a pledge Sept. 17 to keep interest rates near zero for a “considerable time” after the central bank ends bond buying, which it projects will conclude following the next meeting in October.
Kocherlakota’s district includes Michigan’s Upper Peninsula where unemployment fell to 8.3 percent at the end of June from 10 percent a year earlier, according to the Michigan Department of Technology, Management & Budget.
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