Minneapolis Fed board of directors state support for Kocherlakota

In the wake of controversy over some staffing moves the board of directors of the Federal Reserve Bank of Minneapolis has publicly stated the members' support for Fed President Narayana Kocherlakota.

After some high level researchers at the Fed recently lost their jobs, the changes led to an uproar in the economics blogosphere.

Critics are casting doubt on the management style of Kocherlakota and questioning whether he has a vision for the Fed's historically strong research effort.

Last month, the Fed's director of research was replaced after an unusually short, three-year stint in the position. A high-profile monetary adviser got fired, according to another Fed researcher, Ellen McGrattan.

She's said she's not sure she'll have a job at the Minneapolis Fed after a leave of absence, and doesn't know what Kocherlakota's vision is.

Officials at the Minneapolis Fed declined to comment on the moves. So did Patrick Kehoe, the adviser McGrattan said was fired last month.

But on Thursday the bank's board issued a statement. The board "fully supports the vision of its president, Narayana Kocherlakota, for the bank's research department," said chair, Mary Brainerd. "Under his leadership, the bank has significantly expanded the size of its research department, adding diversity in skills and perspectives."