Fed’s Bullard and Lockhart Statements
Written February 18, 2010 at 9:45 PM EST by John Teister
Speaking in Memphis, St. Louis Fed President Bullard made the following comments:
- “Everything” depends on data for exit strategy.
- Fed funds rate increase may be delayed until 2011.
- The view that rates will rise later this year is “overblown”.
- Improving economy will help commercial real estate.
- Mixing politics and policy leads to poor results.
- Pre-crisis fed had insufficient access to information.
- Inflation expectations are rising.
- Fed should have direct access to financial information.
- Labor markets are weak, “at best stabilizing”.
- “Economic recovery is on track”.
- “Housing sector is stabilizing”.
- Fed is keeping “close eye” on inflation expectations.
- Fed will carry out exit strategy “in right way”.
- Understands cause for market “nervousness” from budget deficit.
- Discount rate move unrelated to future of main rate.
- Stands by “extended period” language on rates.
- Discount rate move is “part of normalization process”.
The Fed’s Lockhart also made the following comments:
- Inflation expectations are ”quite well anchored”
- Fed is moving along briskly with “regulatory overhaul”.
- Doesn’t see asset sales as “early or first step”.
- Doesn’t want to “put a date” on “extended period”.
- Discount move doesn’t signal tightening.
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