Friday, March 25, 2011

Dallas Fed President Dennis Lockhart Says Inflation Won't Last

Lockhart is the latest spokesman for the Fed's contention that the current inflation is merely a spike and will be temporary. In a speech to a business group in Fort Meyers, Florida, he also said that the Fed's reliance on core inflation isn't total.
“While short-term measures of inflation have moved up rather strongly in the last few months, I hold to the view that this trajectory will not persist,”...

“Contrary to popular opinion, Federal Reserve officials do actually eat and fill up their gas tanks,” he said.

Lockhart said he thinks the U.S. central bank’s policy makers should focus on headline inflation that includes all prices....
He was also optimistic about prospects for U.S. economic growth.

That speech is easy to dismiss as an "I feel your pain" sympathy fest. It remains to be seen if his talk will translate to action, as he is a voting memeber of the FOMC.

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