Richmond Fed president Lacker, one of the few of QE skeptics (along with Fisher and Hoenig) says it is hard to make the case for further easing but he will try and keep an open mind heading into the FOMC.
Consumer spending patterns suggest growth is quite sustainable at the current pace for the near future, he says.
The dollar seems to be responding to shifting expectations about policy in different countries, Lacker added.
His first choice for a an inflation target would be 1.5% of headline PCE (PCE was flat in the latest reading). He does not think the Fed statement is an appropriate place for a price target and is hesitant to buy into Charlie Evan’s assumptions underlying the a price-targeting framework.
Sounds like a skeptic, but he could be persuaded on QE but not an inflation target. He does not have a vote this year, anyway…
