Jeffrey Lacker
Jeffrey Lacker
Jeffrey M. Lackeris an American economist and president of the Federal Reserve Bank of Richmond since 2004...
core energy facing few good hand last numbers passing price prospect
On the one hand we've got some good core numbers in the last few months, but on the other hand, we're facing the prospect now of the possibility of the energy price surge passing into core prices, and we don't want to see that.
caught core couple focused inflation next numbers quarter
I'm going to be focused on core inflation numbers pretty heavily for the next couple months. The fourth- quarter core inflation number really caught my eye.
concern higher inflation
I think my concern about inflation is distinctly higher now
clear
It is clear we're not done removing accommodation.
activity growth housing inflation low moderation overall pace plausible pose problem rates solid year
Growth is proceeding on a solid pace this year, and inflation is low and stable. Plausible rates of moderation in housing activity will not pose a problem for overall activity this year or next.
expect investment quite robust spending
I expect investment spending to be quite robust this year.
appreciation consumer diminished improving major nation primary problem prospects since solid spending
Moreover, I don't see diminished housing-price appreciation as a major problem for consumer spending, since again, the primary determinant of spending is income, and we see solid and improving prospects for real incomes for the nation as a whole.
behind declare energy entirely focused monetary policy price remaining respond shocks soon
Monetary policy should respond to energy shocks by remaining focused on price stability. I think it is too soon to declare that 'pass-through risk' is entirely behind us.
We're just going to have to see how things unfold.
both confident continue data expects fed inflation knowledge market prices public securities survey treasury validate
Both survey data and the market prices of inflation-protected Treasury securities tell us that the public expects inflation to continue to be contained. I am confident that we at the Fed have the knowledge and the will to validate those expectations.
early
It is too early to say when we're going to stop,
declare energy looks shocks soon
It looks like we're weathering the energy shocks pretty well, but it is too soon to declare us out of the woods.
build changing commitment conditions continue economic low preserve respond
To preserve and build on the credibility we already enjoy, we will need to continue to respond to changing economic conditions in a way that confirms our commitment to low inflation,
constant current expected extended interest moves period rates reaches remain sequence whenever
Thus, whenever the current sequence of tightening moves reaches completion, short-term interest rates should not be expected to remain constant for an extended period of time.