Fed rate hike in 2015 not consistent with mandate: Kocherlakota

28-May (Reuters) — A U.S. interest rate hike this year would be a mistake, a top Federal Reserve official said on Thursday, and would represent a missed opportunity to boost employment and too-low inflation in an economy that has plenty of room to grow.

“The (Fed policy-setting) committee needs to make policy choices that will lead to more great years like 2014,” Minneapolis Fed President Narayana Kocherlakota said in remarks prepared for delivery in Helena, Montana, citing the dramatic improvement in the U.S. labor market last year.

The Fed must be “extraordinarily patient” about reducing monetary policy accommodation, he said, so the job market can return to the strength it had in 2006, before the financial crisis hit.

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PG View: Kocherlakota revives “patience” and kicks it up a notch to “extraordinarily patient.”