Highlights of Jeffrey Lacker speech

  • the US economy has extended solidly since the great recession
  • economy fueled by relatively healthy household sector.
  • Consumer spending, residential investment, overall business investment, and government spending are likely to contribute to continue GDP growth of about 2.2%
  • Falling energy costs and rising value, the dollar have held down inflation recently
  • Inflation is like return 2% of the near-term
  • decline a natural real interest rate suggest that short term interest rateslikely to reach the levels reached in previous expansions
  • Strong reasons to expect short term interest rates to rise in the near-term
  • Rising short-term interest rates are a sign of strength of the US economy
  • Beginning to see some hints of acceleration wage rates
  • Will be surprised if consumer spending is not robust again this year
  • the housing market is also likely to contribute to GDP growth this year
  • expects government to add to GDP in 2016
  • Net exports are likely to subtract from GDP growth
  • monetary policy is highly accommodative right now

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