Fed’s Lockhart says rising rates would argue for more QE

• Sees a ‘gradual improvement’ in the economy
• Growth ‘moderate’ inflation contained
• ‘More confident that the economy is gaining traction’
• Still cautious
• If rates rise, it would argue for more QE
• Reluctant to endorse more QE under current conditions
• With outlook positive, he sees no need for QE
• Economy can be seen ‘half full or half empty’
• Households feeling rising gas prices
• Fed’s 2014 rate pledge is ‘conditional’ on economy but aligns with current outlook

Overall, similar to comments he made Marc h 23