Fed’s Kocherlakota: Fed should do more to lower unemployment

• Should lower unemployment threshold to 5.5% (from 6.5% now)
• Sees 2% inflation with unemployment above 5.5%

Now that’s a doves dove. No sooner does the Fed adopt an employment target than someone begins a campaign to lower it.

Five years of low rates have done precious little to drop the unemployment rate. Not sure why they should be expected to do wonders now…