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The Fed also extended it timeline for keeping short-term rates at record lows until at least mid-2015 and also said it would keep rates at exceptionally low levels for a considerable time after the recovery begins to strengthen. Both Plosser and Evans participate in discussions of the Fed's policy setting panel but do not have votes this year. John Williams, president of the San Francisco Fed and a voting member this year, said on Monday that he believed the Fed's actions this month were essential and should help engineer better growth. Williams and Evans have been in the Fed camp urging more support. One of the biggest surprises in a recent string of speeches came last week when Narayana Kocherlakota, who had been in the anti-inflation camp along with Plosser, came out in support of stronger efforts. Kocherlakota said that as long as inflation remains low, the Fed should keep its short-term interest rate target at exceptionally low levels until the unemployment rate falls below 5.5 percent. The Fed's interest-rate committee next meets on Oct. 23-24 and most private economists say they are not expecting any major policy changes at that meeting, given what has already been done. However, they said the Fed may decide to announce more support for the economy at its last meeting of the year on Dec. 11-12.
[Associated
Press;
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