Fed dissenter: No reversal of rate pledge

AP News
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Posted: Aug 30, 2011 12:57 PM
Fed dissenter: No reversal of rate pledge

One of the three Fed officials who dissented from the central bank's August decision to keep interest super low for another two years says he does not support trying to overturn that commitment.

Narayana Kocherlakota, the president of the Federal Reserve Bank of Minneapolis, says that he sees no reason to revisit the decision because doing so would undercut the ability of the central bank to make similar pledges in the future.

Kocherlakota was one of three Fed officials to dissent from the Aug. 9 decision, which was approved on a 7-3 vote. It marked the first time that as many as three Fed officials have dissented from a policy statement since November 1992.

Kocherlakota made his comments in a speech Tuesday in Bismarck, N.D.