In a meeting held by business and civic leaders, the President of the Federal Reserve Bank of Minneapolis has told that the little pressure of inflation in the US economy indicates that the Federal Reserve will be keeping its target interest rates low for the coming times. 

But for Montanans and all Americans, the President’s claim of few inflationary pressure seems to be a taunt as the prices of gas have surged 70 cent a gallon or more in the past few months. 

Narayana Kocherlakota, current voting member of the Federal Open Market Committee, explained in the meeting and in an interview that from the perspective of setting monetary policy designed to keep inflation in check and unemployment low over the intermediate term, increased food and energy prices do more harm than good when taken into the equation. He further said that inflation rate cannot be nailed in month-to-month basis. Therefore, it is necessary to understand the movement of inflation for the coming three or four years.

It is believed that worldwide recoveries are often slow after financial crises. During financial crisis, the net worth gets eroded and the same happened in the United States therefore the demands are low in America.