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.

10 Jan 2013 - 20:50 - Fixed Income Bank Speaker - Source: Newswires

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