Q&A comments

Lockhart answers reporters questions in West Palm Beach, Florida (voting member on FOMC)

  • expects more gradual pace of tightening.
  • June liftoff on table but not his preference.
  • Expects gasoline dividend will lift spending
  • pace of tightening will be data dependent.
  • he would prefer a later fed rate liftoff date

Rosengren answers questions after his speech in London (not a voting member on the FOMC):

  • fed is quite transparent.
  • It will be several years before inflation hits goal.
  • Doesn't see excessive froth in markets.
  • Low Japan rates haven't threaten financial stability
  • FX rates will have to adapt to the fact that US might be tightening, while Europe is engaging in QE
  • Monetary policy the US is closer to UK than to the EU
  • Other nations exporting some deflation risk to the US

Meanwhile the dollar gets dumped.