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Fed's Kocherlakota: Drop in oil prices good for US economy

Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis
Brian Snyder | Reuters
Narayana Kocherlakota, President of the Federal Reserve Bank of Minneapolis

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.

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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.