Federal Reserve is failing to deliver on 2% inflation vow: Narayana Kocherlakota

MINNEAPOLIS: The Federal Reserve should be careful about reducing its monetary "footprint," especially with inflation running so far below the Fed's 2 per cent goal, a top official of the US central bank said on Thursday.

"We have made a commitment to the American people to keep inflation at 2 per cent," Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank, said in a Town Hall-style event at the regional bank's headquarters. "We are failing to deliver effectively" on that commitment.

The Fed could actually be doing more, rather than less, in terms of monetary stimulus, he said.