MINNEAPOLIS May 10 Minneapolis Fed President
Narayana Kocherlakota on Thursday forecast rising inflation and
said the Federal Reserve should begin to prepare the ground for
an exit from its super-easy monetary policy in the coming
Kocherlakota said he sees inflation at about 2 percent this
year - the Fed's target - but rising to 2.3 percent next year.
Given that rise, he said the Fed's policy-setting committee may
soon need to change its current statement projecting it will
need to keep rates low through late 2014.
"If the committee were to agree with my prognosis that we
should be initiating exit in six to nine months, you would want
to change language of that statement even sooner," he told
reporters after a speech at the Economic Club.