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MNI INTERVIEW: Lockhart Worries About Fed's Long Last Mile

Former Atlanta Fed chief talks to MNI about the Fed and U.S. inflation.

The Federal Reserve will keep interest rates on hold until it sees better prices data, but there are reasons to worry that inflation may be stuck in a 2.5% to 3% range, forcing the Fed to put hikes back on the table, former Atlanta Fed President Dennis Lockhart told MNI.

Most of the FOMC believe the current policy setting is restrictive and the disinflationary trend will resume before long, Lockhart said. The median policy projection from the Committee this week is likely to go down to two cuts from three in March.

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The Federal Reserve will keep interest rates on hold until it sees better prices data, but there are reasons to worry that inflation may be stuck in a 2.5% to 3% range, forcing the Fed to put hikes back on the table, former Atlanta Fed President Dennis Lockhart told MNI.

Most of the FOMC believe the current policy setting is restrictive and the disinflationary trend will resume before long, Lockhart said. The median policy projection from the Committee this week is likely to go down to two cuts from three in March.

Keep reading...Show less