Richmond Fed’s Lacker is pretty upbeat on the US economy. He fears increasing inflation as the recovery unfolds but says a stabilizing labor market could boost consumer confidence.
The economy is doing much better but faces challenges, the noted hawk says. Growth in H2 2009 will have averaged 3.75%, he says.
A worldwide rebound in demand is helping boost US exports, he says but he warns commercial real estate could be a drag on the economy ahead.
The greenback still trades on a soft note with EUR/USD at 1.4425 and USD/JPY at 92.52.
