Fed officials defend promise to keep interest rates low

05/14/2010 | Bloomberg

Donald Kohn, vice chairman of the Federal Reserve, and Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank's vow to maintain low interest rates for an "extended period" might be altered if the economic recovery warrants. "Commitments to maintain interest rates at a given level must be properly conditioned on the evolution of the economy," Kohn said. Kocherlakota said the Fed might raise rates "if economic conditions change appropriately, whether that's in three weeks, three months or three years."

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