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Thursday, April 14, 2016

Fed's Lockhart (Part II)

  • Disappointed on US growth data so far this year
  • sees longer-term US growth rate at about 2%; frustrated with sluggish pace
  • Fed cannot ignore softening abroad
  • External sectors should not dictate policy
  • Core inflation data seem to be firming, but too early to come to be definitive.
  • Monetary policy is not a panacea
  • CPI report didn't change picture dramatically
  • Not sure we are seeing broad based inflation pressures that we want
  • Market scares from Jan/Feb has abated
  • We are not due for a recession
  • with right policies, US economy continue to grow
  • expansions don't die of old age
  • negative rates currently not relevant to US 
  • Negative rates could hurt banking profits/money market infrastructure
Lockhart said earlier he was disappointed with the 1Q GDP and that April was off the table for him. 

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