Fed's Kocherlakota: do "whatever it takes" to spur US hiring
BLOOMINGTON, Minn. Oct 4 (Reuters) - The Federal Reserve should do "whatever it takes" to drive down U.S. unemployment, even if this means courting concerns of another asset price bubble, or inflation than pops temporarily above its two percent goal, a senior U.S. central banker said on Friday.
"The labor market remains disturbingly weak. The good news is that, with low inflation, the FOMC has considerable monetary policy capacity at its disposal with which to address this problem," said Minneapolis Fed President Narayana Kocherlakota, referring to the policy-setting Federal Open Market Committee.
His comments closely followed a speech he gave last week.
"Doing whatever it takes will mean keeping a historically unusual amount of monetary stimulus in place - and possibly providing more stimulus," he said in prepared remarks.
Kocherlakota added that this would be the case "even as" rising asset prices courted concerns of another bubble, or the medium term outlook for inflation rose above 2 percent, the Fed's stated goal.
"It may not be easy to stick to this path. But I anticipate that the benefits of doing so, in terms of employment gains, will be significant," he said.
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