Kocherlakota: Fed Should Have Either Continued QE3 Or Tied Rates To Inflation Outlook

Minneapolis Fed President Narayana Kocherlakota on Friday explained his dissent from the Federal Reserve decision and said the central bank should have either continued its bond-buying program or conditioned the interest-rate outlook to the inflation outlook. "These actions would have put upward pressure on the demand for goods and services and on prices. Just as importantly, these actions would have communicated that the [Federal Open Market] Committee is determined to do what it takes to push inflation back to 2 percent as rapidly as is possible," Kocherlakota said.