Kocherlakota Says Low Inflation Warrants Further Fed Stimulus

``Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the U.S. central bank would have been "totally justified" if it had increased policy stimulus to combat low inflation when it met last month, adding that negative interest rates could be a useful policy tool.'' -- This view has likely become more popular on the Fed board after Friday's employment report. Kudos to the watchers (with whom we agreed) that predicted the single negative-rates "dot" was a seed that would grow like a cancer as more economic data emerged...