from Business Insider:
Today, Minneapolis Fed President Narayana Kocherlakota, is suggesting we may need even more stimulus to get unemployment down and the economy humming.
The dovish Fed official employs buzz phrases like "whatever it
takes," and he even suggests the Fed should ignore warnings of asset
bubbles as it stimulates.
Quoting Kocherlakota:
"Doing whatever it takes in the next few
years will mean something different. It will mean that the FOMC is
willing to continue to use the unconventional monetary policy tools that
it has employed in the past few years. Indeed, it will mean that the FOMC is willing to use any
of its congressionally authorized tools to achieve the goal of higher
employment, no matter how unconventional those tools might be. Moreover,
doing whatever it takes will mean keeping a historically unusual amount
of monetary stimulus in place—and possibly providing more stimulus—even
as:
- Interest rates remain near historic lows.
- Economic growth rises above historical averages.
- Per capita employment begins to rise appreciably.
- Asset prices rise to unusually high levels, leading to concerns about “bubbles.”
- The medium-term inflation outlook rises temporarily above 2 percent.
And stocks have reversed again and are moving higher, after going back to dead flat.
