Minneapolis Fed

James Politi

Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, has just delivered a very interesting speech in Marquette, Michigan, on the shores of Lake Superior. His focus was basically educational: to explain how the Federal Open Market Committee functions – though he did have a message for the markets – that their negative reaction to last week’s monetary policy statement was “unwarranted” and the US economy was in no worse shape than they thought before the meeting.

But in the meantime, he waded into the debate over whether the US is facing a worrying structural shift in the labour market that could lead to high unemployment rates for a very long time. Read more