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Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis, speaks at the ninth annual Carroll School of Management Finance Conference at Boston College in Chestnut Hill, Massachusetts June 5, 2014. REUTERS/Brian Snyder

Fed’s Kocherlakota: drop in oil prices good for U.S. economy

The drop in oil prices is putting money in consumers’ pockets and is “a good thing, basically” for the U.S. economy, Minneapolis Fed President Narayana Kocherlakota said at a town hall at his bank’s headquarters.

At the same time, he said, the oil price decline will put downward pressure on drilling and on production in North Dakota, where the local economy has been experiencing an oil-driven boom for the past several years.

Kocherlakota also said he believes the U.S. economy can continue to grow even if the world economy weakens, but reiterated his view that the biggest challenge for U.S. growth is whether the Fed will be patient enough before raising rates, a move that could potentially choke off the recovery.

In related news, Why the US will power the world economy in 2015.

(Reporting by Ann Saphir; Editing by Richard Chang)

This article was from Reuters and was legally licensed through the NewsCred publisher network.