Kocherlakota: Labor strength still a long way from goal

"I see the labor markets as remaining some way from meeting the FOMC's goal of full employment," says Minneapolis Fed boss Kocherlakota, not buying the sharp drop in headline unemployment as an indicator of strength in the jobs market. While he sees the headline rate maybe dropping to 5.7% this year from 6.2% currently, he's in no rush to tighten policy.

Kocherlakota is instead looking at indicators like too many people aged 25-54 not working, and a high percentage of workers saying they can only find part-time employment.

As for inflation, he expects it to stay below the Fed's 2% target until 2018.

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