Fed’s Lockhart Says Central Bank to Be Accommodative For Years

The Federal Reserve will remain accommodative for years with a mix of tools, and it won’t taper its bond-buying until the economy is ready and financial markets are prepared, Atlanta Federal Reserve President Dennis Lockhart told CNBC on Friday.

The minutes from the Fed’s October meeting—released on Wednesday—intensified speculation in the market of a sooner-than-expected reduction of the Fed’s $85 billion monthly bond purchases.

In a “Squawk Box” interview, Lockhart stressed asset purchases and the future of short term interest rates are not tied together. “We are going to remain very accommodatitve for quite some time, in all likelihood a number of years.”

There’s been quite a bit of progress on the job front, but the anticipated faster economic growth in the second half of this year has not materialized, he said.

Lockhart, a nonvoting Fed member this year, said he fully expects to talk about the possibility of tapering in the upcoming meetings.

via <a href=”http://www.cnbc.com/id/101220738″>CNBC</a>

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza