This is part of the series highlighting supporters of pro-jobs policies. An updated list of supporters can be found here.
Minneapolis Fed President Kocherlakota is a FOMC voting member that sets the Federal Reserve’s monetary policy. Before the Great Recession and early in the recession President Kocherlakota was one of the Federal Reserve presidents most active voices opposing aggressive action by the Federal Reserve to try and address the jobs crisis. However, his perspective was analyzed by other economists and a remakrable thing happenned, as he relates in this New York Times article:
“It’s a little embarrassing to say this, but you make a speech in August of 2010 and it inspires a whole quantity of work where people say, ‘This is what Kocherlakota says and we will now show in this paper that Kocherlakota was wrong.’ There’s a number of ways that people can react to that, and I reacted in the only way that a sensible person can, which is to update.”
This change has led President Kocherlakota to becoming a vocal supporter of fixing the jobs and one of the most aggressive jobs hawks on the FOMC:
“”The Committee should keep its target range for the fed funds rate at its current extraordinarily low level at least until the unemployment rate has fallen below 5.5 percent, as long as the medium-term outlook for the inflation rate remains below 2.5 percent and longer-term inflation expectations remain well anchored.” –6/24/13 Statement
As you can see in the video above, President Kocherlakota beieves this will allow the fed to reach full employment and target inflation faster than the current policy.
He is right. The Fed should be more aggressive in addressing our jobs crisis, in working to Fix the Jobs.