Fed's Kocherlakota wants to boost, not taper, QE3

Fed's Kocherlakota wants to boost, not taper, QE3

The Federal Reserve should take actions to strengthen its support for the economy instead of pulling back, or tapering, said Minneapolis Fed President Narayana Kocherlakota on Thursday. Low inflation shows that Fed policymakers have "a lot of room to provide much needed stimulus to the labor market," Kocherlakota said, in a speech to the Rotary Club of Houghton, Mich. Kocherkakota called for the Fed to set a goal to return employment to its maximal level as rapidly as it can, while keeping inflation close to, although temporarily above, its 2% target. Monetary policy is not impotent, he added. Kocherlakota is not a voting member of the Fed's policy-making committee this year. Over the past few years, he has transformed from a leading hawk, concerned about higher inflation, into one of the strongest voices in favor of asset purchases and an easier policy stance. Not even concerns about asset bubbles should deter possibly adding more stimulus, he said.

Of course, now that they managed to take gold down to a more comfortable level now it can rise on this news and pretty much break even on the day...Nope no manipulation going on here so says the CFTC..