Northern Country

How globalization changes capitalism, the economy and politics

Lockhart has full confidence in the Federal Reserve

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Atlanta Fed President Lockhart in a speech did not mention interest rates today. The markets thanked him for that. The European currency and stock markets around the globe gained. So did oil and gold!

In the last paragraph he expressed concern with timely action to rebalance the economy. He seems to be pretty confident though that the Fed is up to the task. Not everybody else is.

I do not dismiss these concerns out of hand. I also recognize that the task of pursuing the Fed’s dual mandate of price stability and sustainable growth will be greatly complicated should deliberate and timely action to address our fiscal imbalances fail to materialize. But I have full confidence in the Federal Reserve’s ability and resolve to meet its inflation objectives in whatever environment presents itself. Of the many risks the U.S. and global economies still confront, I firmly believe the Fed losing sight of its inflation objectives is not among them.

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Written by Alfred

11. June 2009 at 9:30 pm

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