BRAINERD, Minn. Aug 15 The Federal Reserve
should not make the mistake of raising interest rates too soon,
a top Fed official said on Friday, because doing so could risk
knocking the wind out of the U.S. economic recovery.
Pointing to the "disturbing situation" in Europe, where
inflation is below 1 percent, Minneapolis Fed President Narayana
Kocherlakota warned against heeding growing calls for the U.S.
central bank to exit from its super-easy monetary policy soon.
It is a "mistake to go too early" on raising rates, he told
a group of community bankers. As long as U.S. inflation looks
likely to stay below 2 percent, the Fed has room to help boost
employment through monetary policy, he said.
(Reporting by David Bailey; writing by Ann Saphir; Editing by