Fed's Lockhart more hawkish in his comments from speech. Case for liftoff will continue to firm up

Labor market slack substantially gone

Dennis Lockhart is making the case for a liftoff in December. Lockhart is the President of the Atlanta Fed. His comments from the text of a speech from Bern, Switzerland. He is a voting member of the FOMC this year.

• US central bank intended to shift market expectations of interest rate liftoff with last policy statement; they were successful
• Expects case for a rate hike will continue to strengthen between now and Feds December meeting
• Rate hike remains a close call and subject to incoming data.
• Case can be made that economy is rates and crisis era policies
• Case for liftoff will continue to firm up
• Not concerned the FOMC is behind the curve.
• Fed liftoff will soon be appropriate.
• Inflation expectations fairly well anchored
• Small forecast changes could warrant longer at 0%
• Fed adjustment after liftoff to be very gradual.
• Neutral rate. Around 0 is a reasonable estimate.
• Expects risk that faced FOMC in September/ October to subside