It’s Time For Negative Rates, Fed’s Kocherlakota Hints

Fed chief Narayana Kocherlakota

If you’re a fan of dovish policymakers who are committed to Keynesian insanity, you can always count on Minneapolis Fed chief Narayana Kocherlakota who, as we’ve detailed extensively, is keen on the idea that if the US wants to help itself out, it will simply issue more monetizable debt, because that way, the Fed will have more room to ease in the event its current easing efforts continue to prove entirely ineffective (and yes, the irony inherent in that assessment is completely intentional).

On Thursday, Kocherlakota is out with some fresh nonsense he’d like you to blindly consider and what you’ll no doubt notice from the following Bloomberg bullet summary is that, as the latest dot plot made abundantly clear, NIRP is in now definitively in the playbook. 

  • KOCHERLAKOTA SAYS FED SHOULD CONSIDER NEGATIVE RATES
  • KOCHERLAKOTA: TAPERING ASSET PURCHASES LED TO SLOWER JOB GAINS
  • KOCHERLAKOTA SAYS JOBS SLOWDOWN ‘NOT SURPRISING’ GIVEN POLICY
  • KOCHERLAKOTA: TAPERING ASSET PURCHASES LED TO SLOWER JOB GAINS

So not only should the Fed take rates into the Keynesian NIRP twilight zone, but in fact, the subpar September NFP print was the direct result of not printing enough money which is particularly amusing because Citi just got done telling the market that the Fed should hike (i.e. tighten policy) because jobs data at this time of the year is prone to being biased to the downside. 

Read the rest by Tyler Durden on Zero Hedge

“Can’t Princeton turn out a half decent person these days instead of the constant stream of “pinky and the brain” economists they have created lately?!”

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