Fed’s Lockhart sees slowdown as temporary
On
September 03, 2010
WASHINGTON (MarketWatch) -- There has been too much alarmist discussion of recent economic indicators and the outlook is not as pessimistic as some have suggested, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank on Friday. Lockhart said he thinks the U.S. economy is experiencing a "temporary downshift" and the economy will look and feel better at the end of the year than it does today. In a speech in East Tennessee State University, Lockhart said the Fed's decision last month to buy Treasurys to maintain a stable balance sheet had been "over-interpreted." He said it did not herald the start of new quantitative easing. Lockhart said the August nonfarm payroll report did not change the picture in the labor market of continued high unemployment. Consumers are holding back from spending because of labor market conditions, he said.
Originally from MarketWatch
