News Headline Summary

Fed's Kocherlakota says Fed can have a lot of reserves in banking system without inflation because it can pay interest on bank reserves

Says:

- Fed has the ability to control inflationary pressures even with expanded balance sheet.
- As long as the Fed are hitting its inflation target, it is not monetizing debt.
- We're starting to see some good signs in housing, particularly rising home values.
- Fed has power and will to keep inflation on target.
- Fed forecasts suggests unemployment can come down considerably without generating inflation pressures.

Print 01:51, 11 Jan 2013 - Asian News - Source: Newswires