Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Annie Baxter
Minneapolis

Minneapolis Fed chief sees slow recovery ahead

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

The president of the Federal Reserve Bank of Minneapolis expects to see high unemployment persist for several years.

At a luncheon Friday in Minneapolis, Narayana Kocherlakota predicted that the national unemployment rate will fall slowly to around 8 percent by the end of 2013. And the recovery itself will take yet longer.

"If you're thinking five years, I don't think you'll be disappointed," he said.

Kocherlakota said that's one of the reasons the Fed has had such easy-money policies -- to provide support for the jobs recovery. However, Kocherlakota said he thinks that stance should be slowly ended. And he has twice dissented from decisions by the policy-setting arm of the Fed because of his stance.

Kocherlakota said if the Fed ends up having to rapidly tighten credit to rein in high inflation, businesses will face higher borrowing costs, and they may shed workers as a result. Kocherlakota said that sequence of events happened in the 1980s.