(this update adds more details)
United States Minneapolis Federal Reserve President kexuelaketa (Narayana Kocherlakota) on Thursday (May 5), if the rate of inflation rising as expected, the appeal to the Federal Reserve (FED) at modest interest rates before the end of 2011.
kexuelaketa said interest rates depends on the situation of inflation and unemployment are expected, core inflation is expected in 2011 and the remaining time will be in 1.5%, the unemployment rate will fall to 8-8.5%, and normalize the market 5 years time.
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kexuelaketa, 5, 6 years in the future of the Federal Reserve's long-term tasks should be to reduce balance sheet, or through a reduction of the securities positions of the Federal Reserve to tighten monetary policy, but its more likely raise interest rates.
he also added that 2011 is expected to gross domestic product (GDP) growth 3-3.5%, but the reduction of household wealth and lend carefully.
when asked about how to determine the correct value of the Renminbi, said, this is a difficult question to answer, but if tariffs on Chinese goods, then the United States in recent decades to benefit from free trade to reduce.
kexuelaketa also noted that the United States fiscal position worries were justified, but he was encouraged by the dialogue among Washington politicians.
he said investors are still on the United States Treasury security confidence in moments of crisis, investors will enter the United States bond market risk aversion.
, referring to US dollars, he pointed out that the Fed would ensure the stability and health of the US dollar is the best way to implement some long-term policies encouraging economic growth, to shift the focus to maximize employment, as well as the dual tasks of stabilization and lower inflation.
