Lockhart Sees ‘Big Influence’ From Fed Pledge to Hold Rates Low

Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank should have a significant impact by pledging to hold interest rates low through at least mid-2013, while the commitment may change should the economy gain strength.

The central bank’s pledge “should have a big influence on the market,” Lockhart said in response to an audience question after a speech in Lafayette, Louisiana.

“Even that is conditional to an extent” and “could be revisited,” Lockhart said. “For the most part, we can count on it.”

To contact the reporters on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net;

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net