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Fed's Lockhart bullish about U.S. economy, but visibility limited

  • The Atlanta Fed's Dennis Lockhart expects the U.S. economy to start accelerating to an annual rate of 3% this quarter, although "it may not be clear for several months, or even quarters," whether GDP is on "a stronger and sustained growth path around a run rate of 3%."
  • Still, Lockhart believes that growth "will justify beginning the process of raising rates in the latter half of 2015," with the "normalization of interest rates to be gradual."
  • Lockhart, who was speaking in Dubai, also said that a test scheme involving reverse repos has been successful and "may very well have a role" in how the Fed tries to influence short-term interest rates. The program allows banks and financial firms to park cash with the Fed in exchange for an overnight loan of U.S. Treasurys. The central bank can manipulate the rates attached to the transactions.
Comments (9)
  • SoldHigh
    , contributor
    Comments (1000) | Send Message
     
    The US economy will have a much better chance at achieving a sustainable 3% growth rate once it has a leader in the WH who appreciates the simple fact that growth comes from the private sector, not a govt with regulators who strangle growth.
    11 May, 10:41 AM Reply Like
  • Tigerpaw
    , contributor
    Comments (14) | Send Message
     
    @SolidHigh - your comment reflects less on your lack of understanding of how this economy actually operates, or, we could easily gather that the WH's previous resident had an even weaker grasp on the private sector impact on growth, given that trend (2 contractions) from 2003-2009. Also, it reflects more of your additional failure to understand how gullible you might be to the regular streams of Fed market 'jawboning'. Such 'jawboning' habitually overshoots optimistically, falls short, all the while taking those such as you with given political biases into whatever preconceived notions you might have, regardless of how you, or the Fed governors, also fail to notice that reality is elsewhere.
    http://nws.mx/RD19hc

     

    Perhaps, using evidence rather than conjecture, you are telling us that a Clinton is more likely to help achieve 3% growth than a Bush? History, with evidence, might tend to support that stronger suggestion, than anything that either Lockhart or you might bring to the table at this time, otherwise.

     

    So, remind us again how economic growth has so much more to do with the WH occupants than with other more substantial factors that you might have overlooked. Just leave out the part about these unsubstantiated and forgettable Fed comments, if you find that palatable.
    11 May, 11:05 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Obama built this.
    12 May, 04:07 AM Reply Like
  • Tigerpaw
    , contributor
    Comments (14) | Send Message
     
    I'm glad 'simple' works for you.
    12 May, 02:33 PM Reply Like
  • Continental Kid
    , contributor
    Comments (197) | Send Message
     
    Tiger... seems to forget Clinton repealed Stegal-Glass in 1999...W Bush inherited the DOT COM bust that grew before his presence...9-11 shut down quite a bit of the economy as well....Bush made mistakes ....no doubt all presidents do..

     

    But Obama has over regulated this economy into a .1 percent first quarter GDP.....with an all out offensive put on by the FED.....imagine if any other president had the FED pumping out 45 to 100 billion a month into their economies for 4 plus consecutive years...

     

    That says about all I need say.....

     

    Best of luck to all

     

    p.s. I'm not a raciest
    11 May, 07:45 PM Reply Like
  • Tigerpaw
    , contributor
    Comments (14) | Send Message
     
    "...Clinton repealed Stegal-Glass in 1999..." And, after Clinton left, the other guys did what about this???

     

    "....W Bush inherited the DOT COM bust .." Kind of ignores the benefits of the 15 years leading up to it, doesn't it...or, the productive advantages from all of the tech companies that have thrived as a result.

     

    "...9-11 shut down quite a bit of the economy as well..." Kind of makes it easy to ignore the trillions in expansion added BECAUSE of 9/11.

     

    "...Obama has over regulated this economy into a .1 percent first quarter GDP..."
    Rates of change in GDP have been below the long term trends since the mid-70's, if you hadn't heard, with just a brief blip back closer to the trend for a brief period during the 90's. No mention of the current Congress in your imagination.....I wonder why? Oh, I think I know...your guys in charge, or, at least as figureheads. Still...record levels of confusion and uselessness.

     

    ".. pumping out 45 to 100 billion a month into their economies for 4 plus consecutive years..." Wall Street is not 'the economy'. Main Street isn't benefiting. Gucci, Benz, BMW, Tiffany are doing great. Target, Kohl's, GM, Chrysler, not so great. The broad labor force isn't seeing enough of this to matter. Hadn't you heard?

     

    Go back a bone up on the details, not just the sound bites.
    12 May, 02:32 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Do you really believe the stuff you write?
    12 May, 03:01 PM Reply Like
  • Tigerpaw
    , contributor
    Comments (14) | Send Message
     
    Oh, that's right. You're one of those folks who think it's not about what's true or false, just as long as you feel what YOU believe is true, or not.
    12 May, 04:13 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (531) | Send Message
     
    Could have said the same about you especially, since you offer support to the walking disaster currently occupying the White House. As scary as Obama is, what makes me truly afraid for the future of the US is the number of morons that support him.
    12 May, 04:22 PM Reply Like
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