Fed’s Lockhart Backs Policy, Would Tighten to Curb Prices

Federal Reserve Bank of Atlanta President Dennis Lockhart said that while the Fed’s current monetary policy is appropriate to bring about a moderate expansion and stable prices, he is ready to tighten policy if recent higher inflation persists.

“I am prepared to support a change of policy if evidence accumulates that the low and stable inflation objective is at risk,” Lockhart said today in a speech in Fort Myers, Florida. “For now, however, I remain satisfied that the current stance of monetary policy is appropriately calibrated to the current and projected state of the economy and supportive of both the employment and price stability objectives.”