Fed's Jeffrey Lacker speaking in Baltimore
- Case for more rate hikes has been bolstered by estimates that the natural real rate is at or just above zero
- Monetary policy determines long run prices not growth
- Fed still has an important role in aiding growth
- Successive rounds of QE have had little or no tangible effect on the economy
- No evidence that a recession is imminent
One of the Fed hawks but is not a voter this year.
Many are sceptical that QE has done anything but try telling that to the ones you have done it.