- Decision on further easing is cost-benefit analysis
- Still in the process of weighing all considerations
- Set amount or open-ended purchases are both options
- Housing appears to be stabilizing and improving
- Progress in labor market has slowed
- Economic data in last month has been “firm”
- Sees more appetite for risk
- Disinflation and deflation not now a concern
In the past, disinflation was the main driver for QE operations. Obviously, Lockhart is still on the fence but it’s hard to see how enough factors could align for a move in Sept.