San Francisco Fed president Yellen does her two-handed economist bit, saying the economy looks to be recovering but that it faces many hurdles. Commercial real estate is a major hurdle ahead, she warned, as did Atlanta’s Lockhart. She sees disinflation as a bigger risk than inflation, at this point.
Lockhart said a short while ago that the Fed may need to hike rates while unemployment remains uncomfortably high. Not many in the market are heeding that warning, as yet. That clearly seems to be a minority view in the halls of the Fed.
