Kocherlakota: FOMC moving too fast on taper

|By:, SA News Editor

Inflation is too low, unemployment is too high, and the Fed is being too hasty in removing stimulus, says Minneapolis Fed boss Kocherlakota. "An unemployment rate of 6.7% means that the U.S. labor market is far from healthy," he says, "but I would say that this measure - troubling as it is - could well overstate the degree of improvement in the U.S. labor market."

Kocherlakota was the sole dissenter at the last FOMC meeting, when the group voted to taper further and signal a hike in the Fed Funds rate in H1 of 2015.

At this point December 2015 Eurodollar futures are pricing in just a bit more than three 25 basis point hikes in the Fed Funds rate between now and then. At the long end, the 10-year Treasury yield is off two basis points on the session to 2.68%.

TLT +0.25%, TBT -0.5%

ETFs: TBT, TLT, TMV, SHY, TBF, EDV, TTT, TMF, SBND, ZROZ, TLH, DLBS, VGLT, BIL, SHV, UBT, TLO, VGSH, SCHO, LBND, TENZ, TYBS, DTUS, SST, DTUL, TUZ, DLBL