The Fed Is Inflating Asset Prices And Increasing Volatility, And It Should Do More, Kocherlakota Says

Admitting that the Federal Reserve is responsible for creating financial instability, and possibly brewing the next toxic asset bubble, Minneapolis Fed President Narayana Kocherlakota said they have to do more to stimulate the economy, as inflation is too low. Kocherlakota predicted five to ten years of financial instability, as the Fed marches on with unusually low, and currently negative, interest rates, yet suggested the alternative would be "much worse."