Fed Cites Improved Labor Market, Ends QE as Planned

The Federal Reserve cited improvements in the labor market as a reason for ending its asset purchase program, while maintaining low interest rates. New language in their guidance addresses concerns about low inflation and economic improvements. The Fed anticipates keeping the federal funds rate low unless inflation and employment progress faster than expected. Inflation remains below the target, but the likelihood of it staying low has decreased. Economic activity is expanding moderately, with labor market improvements. However, Narayana Kocherlakota dissented, advocating for continued asset purchases and a commitment to low rates until inflation stabilizes.

What factors are contributing to the Fed's assessment of inflation running below 2%?

What dissenting opinion was expressed by Narayana Kocherlakota regarding the Fed's actions?