Tonight at 7PM Kocherlakota meets with students and the public in #Duluth for a town hall session about the Fed and its mandates. #MFedQandA- Kocherlakota’s opening remarks for a town hall session at #UMD discussing the Fed and its goals. #MFedQandA http://goo.gl/QUEfX
- Kocherlakota: the Fed’s mandated goals are clearly Main Street ones—to promote max employment and price stability. http://goo.gl/QUEfX
- Promoting max employment means Fed is charged w doing what it can to ensure Americans who want to work can do so. http://goo.gl/QUEfX
- Kocherlakota: Some observers argue that the Fed has done too much, has been too accommodative. I strongly disagree. http://goo.gl/QUEfX
- Kocherlakota now taking questions from the audience at #UMD. We will be tweeting more than usual as we follow the discussion. #MFedQandA
- Question from audience: Thoughts on economic impact of hurricane? #Sandy #MFedQandA
- Kocherlakota: General rule is natural disaster has short-term effect, but not large-scale economic consequences over long term. #MFedQandA
- Question about the natural rate of unemployment. Kocherlakota: Unemployment rate in long-run consistent w/ inflation target. #MFedQandA
- Question: Policies in place to prevent another recession? #MFedQandA
- Kocherlakota: In 2010 Congress passed #DoddFrank to monitor systemic financial instability. Changes in infancy still. Safer over time.
- Question about the gold standard. Kocherlakota: Gold Standard puts limit on how you can conduct monetary policy. #MFedQandA
RT @LorcanRK: Isn't that the point of a gold standard? MT @MinneapolisFed Kocherlakota: Gold Standard puts limit on how you can conduct monetary policy- Kocherlakota: In ‘08/’09, Fed injected liquidity into mkts to prevent conditions from worsening; not able to if on Gold Standard. #MFedQandA
- Question about the ongoing issues in Europe and how that affects the US economy. #MFedQandA
- Kocherlakota: Past few years we’ve seen positive changes in US & some in Europe; optimistic that US could withstand Euro shocks. #MFedQandA
- Question about negative real interest rate. #MFedQandA
- Kocherlakota: In times of uncertainty, huge demand for limited number of safe assets; low interest rates symptom of uncertainty. #MFedQandA
- Question: How will the Fed unwind its assets it currently holds, like its mortgage-backed securities? #MFedQandA
- Kocherlakota: FOMC has planned for this; we will start selling them off at some point and also depend on assets being paid off. #MFedQandA
- More from the FOMC on the exit strategy, from June 2011: http://goo.gl/Dnce8 #MMFedQandA
- Question: What do you say to people who have a need to grow their savings? #MFedQandA
- Kocherlakota: Big challenge for savers is huge demand for saving. Price is high and the yield is going to be low. (1/2) #MFedQandA
Duluth Town Hall, October 30, 2012
Minneapolis Fed President Narayana Kocherlakota spoke at a Town Hall event in Duluth, Minnesota at the University of Minnesota-Duluth on October 30, 2012. He made some remarks, then took questions from the audience. Some of the event was captured on Twitter.
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