Fed’s Lockhart says he Supports More Tapering

A top U.S. central banker on Monday cautiously endorsed further cuts to a stimulative bond-buying program, warning the labor market has not yet healed and that there are worrisome signs of disinflation in the economy.

Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, also suggested the central bank should clarify its future plans for raising interest rates now that U.S. unemployment has dropped to 6.7 percent – close to the Fed’s stated threshold of 6.5 percent for considering tighter policy.

In a speech on what 2014 may hold for the economy, he said “very accommodative” monetary policy remains appropriate despite his predictions for a pick-up in economic growth and a gradual rise in inflation this year.

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.