Minneapolis Fed President Narayana Kocherlakota: Fed bond purchases won't have a huge impact on...

|By:, SA News Editor
Minneapolis Fed President Narayana Kocherlakota: Fed bond purchases won't have a huge impact on the economy, in part due to $1T in excess reserves at banks. The risk of higher inflation isn't heightened by banks holding more excess reserves than they already do. The recovery is "distinctly modest," but there's nothing good about jobs: "The lack of vitality in the U.S. labor market can only be termed disturbing."