- Pace of bond buying depends on economy
- Watching closely to see if there is a negative spillover from markets into economy
- Bernanke`s comments don`t constitute a shift in policy
- Inflation to rise gradually toward target but bears close watching
- If inflation expectations soften appreciably, Fed would have to re-evaluate
- Sees growth accelerating slightly
- Expects GDP growth of 2-2.5% in 2013
- Sees rate rise some in 2015
- Expects current job pace to continue, would mean 7% unemployment in mid-2014
Lockhart is a centrist at the FOMC and is walking right down the middle here, echoing Bernanke. The dollar is turning around as EURUSD continues to fan out in an unusual broadening pattern. It`s clear to me there was some strong dollar demand coming through European markets and it`s over now.
