Comments from Atlanta Fed President Dennis Lockhart on the economic outlook and monetary policy:

  • Sees first rate hike by mid-2015 or ‘a bit later’
  • Patience on rates won’t cause systemic instability
  • Inflation undershoot bigger concern than overshoot
  • China transition ‘challenges’ among global risks
  • Sees 3% pace of GDP growth through 2015
  • Housing market ‘raises some concern’
  • Lack of wage pressure and weakening of inflation show still-weak demand conditions in overall economy
  • Spike in dollar could or weak consumer spending could dampen growth in coming months

The main headline is a touch hawkish but everything else is just the opposite. The Fed is really starting to worry about low inflation and a stronger dollar, among other things.