Fed's Kocherlakota: do "whatever it takes" to spur US hiring


BLOOMINGTON, Minn., Oct 4 (Reuters) - The Federal Reserveshould do "whatever it takes" to drive down U.S. unemployment,even if this means courting concerns of another asset pricebubble, or inflation than pops temporarily above its two percentgoal, a senior U.S. central banker said on Friday.

"The labor market remains disturbingly weak. The good newsis that, with low inflation, the FOMC has considerable monetarypolicy capacity at its disposal with which to address thisproblem," said Minneapolis Fed President Narayana Kocherlakota,referring to the policy-setting Federal Open Market Committee.

His comments closely followed a speech he gave last week.

"Doing whatever it takes will mean keeping a historicallyunusual amount of monetary stimulus in place - and possiblyproviding more stimulus," he said in prepared remarks.

Kocherlakota added that this would be the case "even as"rising asset prices courted concerns of another bubble, or themedium term outlook for inflation rose above 2 percent, theFed's stated goal.

"It may not be easy to stick to this path. But I anticipatethat the benefits of doing so, in terms of employment gains,will be significant," he said.

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