Kocherlakota Says He Could Support Hike Next Year If Data Changes

Minneapolis Fed President Narayana Kocherlakota, one of the more dovish members of the central bank, on Thursday suggested he could support a rate hike next year depending how data evolved. "My inflation outlook could rise. If so, my preferred date of interest rate 'lift-off' would come forward in time-possibly into next year," he said. But he said a falling unemployment rate is no reason to tighten policy unless that fall is generating unduly high inflationary pressure, as he says under his current outlook it would be inappropriate to raise rates next year. Kocherlakota is a voting Federal Open Market Committee member this year, but won't be again until 2017.