Richmond Fed president Lacker, one of the more hawkish members of the FOMC says that the economic backdrop hasn’t changed since the last FOMC meeting. He sees the risks of a double-dip recession diminishing and says the Fed should begin weaning the mortgage market off the subsidization it has been receiving in recent months,
Now is not the time to hike rates and his is willing to fulfill the bond buying programs already announced, he says. Commercial real estate will be a major drag goig forward, he warns.
Markets are little changed after the dollar slide stalled an hour or so ago. We trade at 1.4785 and 88.45.