Comments from Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis
(finally something, I'd been expecting him around 2115GMT)
- Says lower neutral US real interest rate has raised risks of financial instability, hurt monetary policy effectiveness
- Says one way to combat financial instability and policy effectiveness risks is for US government to issue more debt
Headlines via Reuters
Kocherlakota didn't add anything further on the current outlook for the US economy or monetary policy
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full text of his speech: Public Debt and the Long-Run Neutral Real Interest Rate