Minneapolis Federal Reserve President Narayana Kocherlakota said Tuesday that his current outlook for persistent low inflation precludes any liftoff in 2015. In a speech prepared for delivery in Rapid City, S.D., Kocherlakota said he doesn't see inflation rising to 2% until 2018. This implies that, at any Fed policy meeting in 2015, inflation would be expected to be below the Fed's inflation goal over the following two years. "It would be inappropriate for the FOMC to raise the target range for the fed funds rate at any such meeting," Kocherlakota said. The Minneapolis Fed President is one of the most dovish Fed presidents. He is a voting member of the Fed policy committee this year, but will not be one in 2015.
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