Comments from Richmond Fed hawk Jeffrey Lacker in Charlotte:
- Inflation has ‘bottomed out’, moving toward target
- Fed needs to withdraw stimulus at appropriate time
- Sees growth continuing at 2.0-2.5% rate
- Significant growth in consumer spending unlikely
Lacker is a bit more somber than I would expect. Nothing to suggest he will be pushing for action in the near future.
“I have come to the conclusion that a sustained acceleration of growth to something over 3% in the near future is unlikely,” he said.
He will hold an audience Q&A later but won’t take questions from the media. Kocherlakota speaks at 1745 GMT.