Richmond Fed president Lacker sees the recession ending later this year and says the Fed must be prepared to tighten rates before too long so as not to kindle inflation.
Labor markets may continue to weaken near-term, he warns, but says housing and manufacturing are past the worst. Lackers also credits monetary policy with helping stabilize the economy more than stimulus.
Also crossing the wires is the Fed senior loan officers survey. Credit is tightening less than it had previously, bankers report to the Fed.
The S&P is consolidating gains just below the 900 level while currencies are consolidating their strength versus the dollar.
