One Dissenter Down, Will The Rest Follow?

Minneapolis Federal Reserve President Narayana Kocherlakota just made some extremely interest comments in a speech, discussing his dissent at the August Federal Open Market Committee meeting. While he was one of three dissenters at the August FOMC meeting, Kocherlakota, said that he is leaving open the possibility for more accommodation, should the economy need it. He said that unemployment is not likely to come down and inflation is not likely to rise with sluggish GDP growth. However, he said that inflation and unemployment are not signaling a need to ease, but he is open to the possibility should conditions warrant it. Here is his speech in its

Kocherlakota, along with Dallas Federal Reserve President Richard Fisher and Philadelphia Federal Reserve President Charles Plosser dissented at the last FOMC meeting. It seems as if Kocherlakota, who has been viewed as hawkish on inflation in the past, is slowly, but surely coming to the dovish side. If Kocherlakota does vote in favor of additional easing, that would leave just Fisher and Plosser as voting members of the FOMC who dissented against keeping rates at current levels until at least mid-2013, should conditions warrant.