Kocherlakota- Fed buys not seen sparking inflation

ST. PAUL, Minn., Nov 30 (BestGrowthStock) – Market participants do
not see the Federal Reserve’s latest round of U.S. Treasury
purchases as sparking out-sized inflation, a top Fed official
said on Tuesday.

“Markets are very efficient, very rational,” Minneapolis
Fed President Narayana Kocherlakota said at a symposium at
Hamline University in St. Paul, Minn.

While some limited increase in inflation would be a good
thing, he said, “I don’t think those kind of effects like, ‘boy
the Fed has inflated its balance sheet, that’s going to lead to
big changes in inflation,’ I don’t think that linkage is there.
And I don’t think that traders really embed that in a major
way.”
(Reporting by William Wilcoxen; Writing by Ann Saphir; Editing
by James Dalgleish)

Kocherlakota- Fed buys not seen sparking inflation