Lockhart is moderately hawkish, so this is important. That sound you hear is the QE2 leaving her berth.
- Sees easing as further insurance against disinflation turning into deflation
- Favors adopting more explicit inflation objective
- Speculation of Fed easing has contributed to concern over competitive devaluations
- Inflation has settled at unacceptably low level
- scope for more easing to spur spending by consumers, businesses
