Given his soft outlook for employment and inflation, the Fed needs to be more accommodative,...

|By:, SA News Editor

Given his soft outlook for employment and inflation, the Fed needs to be more accommodative, says Minneapolis Fed chief (and former hawk) Kocherlakota. He suggests lowering the unemployment threshold for tightening to 5.5% from 6.5% as his models tell him those magic 100 basis points will increase spending, and drive up employment and prices.