Fed must wait until 2016 to raise rates, Kocherlakota says

The US central bank must wait until next year to raise its main policy rate, according to one policymaker.

In remarks prepared for delivery on Tuesday afternoon the president of the Federal Reserve bank of Minneapolis, Narayana Kocherlakota, said: “The FOMC can only achieve its congressionally mandated price and employment goals by being extraordinarily patient in reducing the level of monetary accommodation.

“Under my current outlook, I continue to believe that it would be a mistake to raise the target range for the fed funds rate in 2015.”