Richmond Fed president Lacker says that for him, consideration of further easing steps is very far away. It would take a very substantial adverse shock.
- Lacker does not expected dramatic worsening in housing; says it is now a smaller percentage of the economy
- Effects of European debt crisis on the US likely to be minor
- Comfortable with rates where they are now
- Market overreacting to a couple of weaker-than-expected economic reports
- A sustainable fiscal plan for the US government would be beneficial to the recovery
Bottom line: Lower for longer but no lower
