Kocherlakota calls for rate cut

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Promising to keep rates low until unemployment falls could help bring joblessness down, top federal reserve official Narayana Kocherlakota told business leaders yesterday. Fed officials expect unemployment to fall to somewhere between 5.2 per cent and six per cent in the long-run – that is the next five to six years. But Kocherlakota said unemployment would come down “six months to a year” earlier with a Fed commitment.