Atlanta Fed President Lockhart is speaking live on Bloomberg TV:
- Welcomes the trend on the economy
- If we look at the past few years, inflation has been too low
- I want to see the economy to stand the test of time
- I will tolerate some overshoot in inflation, beyond 2.5% one should be concerned and take action
- Recent numbers may have some transient factors in them boosting inflation
- Conditions will be right in H2 2015 for raising rates
- The benefits of waiting to hike outweigh the potential costs
- 5.25% is near full employment but must look at other numbers
- I emphasize part-time for economic reasons, which was poor in recent report
Lockhart is closer to the core than Bullard or Plosser and I’d expect his comments reflect what Yellen and Dudley are thinking. Fischer and the new governors could, however, swing the balance toward the hawks.
It will be very interesting what Yellen has to say on Wednesday but it might sound a lot like what Lockhart said.
