BUTTE, Montana Oct 17 A top Federal Reserve
official on Thursday took another swipe at his more hawkish
colleagues, warning against public discussion of reducing the
U.S. central bank's bond-buying stimulus.
"Talking about reducing stimulus right now because we are
... sufficiently satisfied with where we are in the labor market
outlook ... I think that sends exactly the wrong message,"
Minneapolis Fed President Narayana Kocherlakota said after a
speech in Butte, Montana.
The Fed's policy-setting Federal Open Market Committee, or
FOMC, he added, "does not give the whatever-it-takes mentality
that ... I think we should be conveying to people."
Addressing this week's near U.S. government default,
Kocherlakota, who does not have a vote on the FOMC this year,
said the quicker politicians get their fiscal house "in order"
the more that longer-term inflation expectations will be
anchored, and the better ultimately for monetary policy.