Fed’s Lockhart: September is a Live Meeting, Calls for ‘Serious Discussion’ on Rate Hikes

In a speech given today, the last day to talk shit ahead of the Fed’s September Fed meeting, Fed’s Lockhart made hawkish comments, which in fact were taken as dovish by the pajama clad morons in the futures pits.

Read for yourself.

“If 1.6 percent inflation and 4.9 percent unemployment were all you knew about the economy, would you consider a policy setting one tick above the zero lower bound still appropriate?” Lockhart said in a morning address at the National Association of Business Economists. “I think circumstances call for a lively discussion next week.”

Lockhart has said recent data and contacts with business officials in his southern region leave him confident that job growth will continue and inflation eventually rise towards the Fed’s target.

Though not ruling out some of the more pessimistic arguments of his colleagues who feel the economy may be in a low growth rut, he regards the economy as “chugging along, not stalling out.”

Growth should strengthen in the second half of the year, moving towards a three percent annualized rate, he said. Though weak inflation remains an “awkward” aspect of the Fed’s policy puzzle, he said he remains confident that will rise over time because of still strong consumer spending and continued job growth.

“Conditions warrant that serious discussion,” when the Fed meets next week, Lockhart said.

Losses in SPY futs have halved since this comments were aired, all of which are a mystery to me.