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Fed would raise rates slowly under price targeting says official

Published on May 22, 2014 2:40 AM

MINNEAPOLIS (REUTERS) - The rate at which the Federal Reserve would raise interest rates in the years ahead would be "even slower" than usual if the US central bank were to adopt a strategy of price-level targeting, Minneapolis Fed President Narayana Kocherlakota said on Wednesday.

Kocherlakota had earlier in the day floated the idea of price targeting instead of inflation targeting, which is the strategy the Fed and most other central banks adopt in stabilising prices in the economy.