Looks like the Fed’s Jeffrey Lacker doesn’t quite agree with his contemporary Lockhart’s low rates for a long time comments from yesterday. Lacker says that while the economic outlook is improving, the recovery is likely to be slow and uneven for some time, but stressed that keeping inflation well contained may require action before a vigourous rebound is established. He goes on to say that the labor market is the key concern, with weak incomes dampening consumer spending growth.
Eur/Usd continues its rather staedy ascent now at 1.4270. I’ve heard of a few offers in the 1.4300 area, but it seems many market participants have been quite surprised at this bounce, so we may have to squeeze out a few weak shorts.
