Salient to Investors:
Jeffrey Lacker at FRB of Richmond said:
- The Fed is not close to tapering QE and expects 2 more years of sluggish growth, and 2.25 percent growth in 2014.
- The Fed will not alter their guidance about tapering based on GDP, focusing instead on jobs.
- Markets are better aligned now with the FOMC’s expectations.
- Recent low inflation are temporary and price increases will pick up.
- Structural factors in the labor market affect particularly labor force participation
Narayana Kocherlakota at FRB of Minneapolis said unemployment won’t fall below 7 percent until half2 2014., and recommends QE at least until unemployment is below 7 percent.
Read the full article at http://www.bloomberg.com/news/2013-06-26/lacker-says-fed-not-near-cutting-balance-sheet-growth-sluggish.html .
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