MINNEAPOLIS, July 8 A top Federal Reserve
policymaker poured cold water on some positive recent economic
data, saying on Tuesday he does not expect the "rapid" drop in
U.S. unemployment to be sustained in coming months and calling
firmer inflation "temporary."
Narayana Kocherlakota, president of the Minneapolis Fed and
a dovish voter on monetary policy this year, said he expects
unemployment to fall just below 6 percent by year end, when he
sees core inflation around 1.6 percent. The economic contraction
in the first quarter means Americans will be "fortunate" to get
2.5 percent GDP growth this year, he added.
(Reporting by Jonathan Spicer; Editing by James Dalgleish)