Fed's Lockhart backs staying on sideline

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Fed's Lockhart backs staying on sideline
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) - The Federal Reserve should stay on the sidelines, keeping its power dry in case the economy weakens, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank on Tuesday in an interview on the CNBC business news cable channel. Lockhart, a voting member of the Federal Open Market Committee, is seen by Fed watchers as a centrist on the central bank, so his views are closely watched. Appearing with Lockhart, Charles Evans, the president of the Chicago Fed bank and not a voting FOMC member this year, again urged the central bank to take more easing steps. He called for the Fed to switch its guidance from late 2014 to an economic trigger of a 7.5% unemployment rate. Lockhart said he was not changing his outlook based on the first quarter's disappointing 2.2% growth rate. Lockhart said he was skeptical that more asset purchases would benefit the economy. "I think there is only so much we can do to stimulate loan demand and to change the risk appetite of the financial system," Lockhart said.