Comments from Fed’s Lacker:
- Says policy must ensure inflation expectations do not drift from 2% goal
- Expects inflation to gradually converge on 2%
- No more labor underutilization now than in past when unemployment was 5.9% before
- Sees slow employment growth, about 1% productivity
- Repeats opposition to holding MBS in portfolio
- Sustained 3%-plus growth unlikely
For one of the Fed ‘hawks’, he doesn’t sound like someone who will be pounding the table at the FOMC in favor of sooner hikes.