ROCHESTER, Minn. — He is the man in charge of policy making for the Federal Reserve and overseeing the bank.
Tuesday he took some time to stop by our area to see what is going on here and share a little insight on what he is doing.
Mayor Ardell Brede and the city of Rochester play host to some pretty famous people, many of whom visit the Mayo Clinic, but this one is stopping by to talk economics.
“Obviously with all of the potential that’s going to be coming from DMC and everything else, and it’s already started, obviously the mayor of the city and the city itself should be supportive and are,” Brede said.
So it was a no-brainer for him to take some time out of his day to listen to the words of Minneapolis Federal Reserve President Narayana Kocherlakota.
“I think it speaks to the credibility that this city has to get a speaker of that stature to come here, probably one of his first places that he’s made a public address,” Brede said.
Before that address Kocherlakota took some time to talk with area business leaders.
“Obviously we’re not going to make monetary policy based on what’s happening in Rochester, but what’s happening in Rochester, what we learn from our local business contacts is a way for us to formulate a vision for what’s going to be coming around the corner,” Kocherlakota said.
He says the Federal Reserve has the tendency to look back and they need ways to look forward. He hopes the current interest rates have people planning ahead.
“It’s always the counterfactual in macroeconomics and the counterfactual is if we had higher interest rate policies in place and we’re not providing the kind of stimulus that we’re providing, employment would be lower and inflation would be lower as well,” Kocherlakota said.
Brede is just glad he got to share a table with someone like him.
“We’ll be able to chat a little bit about how significant Rochester is to the economy, not only for here, but for the entire state and in some ways the world,” Brede said.
During his presentation Kocherlakota spoke on the unemployment situation in the country.
He said the number of jobs being created is promising, but there is still a long way to go before he is satisfied with where things are at.