Atlanta Fed President Dennis Lockhart says that the economy is growing at a respectable pace, with solid domestic demand amid a weaker external sector.In summary, his main points for U.S economy are in the below:
- He foresees moderate growth in 2016 at a pace between 2 and 2.5 percent, along with signs of a tightening labor market and accelerating wage growth.
- The global economic environment is a downside risk to his outlook, but growing domestic investment could provide a potential upside.
- Lockhart expects the economy to enjoy enough self-reinforcing momentum to sustain gradually rising interest rates. Monetary policy decisions are not on a preset path and will be data-dependent, he states.
- A key focus for 2016 will be the behavior of inflation. Lockhart expects inflation to begin converging to the FOMC’s 2 percent target, but he will look for more hard evidence in the data.