Kocherlakota says new Fed low-rate vow could reduce joblessness
IRONWOOD, Mich. Sept 20
IRONWOOD, Mich. Sept 20 (Reuters) - Vowing to keep benchmark U.S. interest rates low until the jobless rate falls below 5.5 percent as long as the inflation outlook stays under control could help reduce joblessness faster than otherwise, a top Federal Reserve official said on Thursday,
Fed officials' long-run forecast for unemployment - that is, their forecast for the jobless rate in five to six years - is between 5.2 percent and 6 percent.
Tying the Fed's low-rate vow to a jobless rate of 5.5 percent would move that forward by "six months to a year," Minneapolis Fed President Narayana Kocherlakota told a group of business leaders in Ironwood, Michigan.
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