Fed's Lacker (hawk): More aggressive rate increases would be in order if inflation moves rapidly back toward 2%
- Inflation has been weak due to crude prices and the strong USD, reiterates inflation to rise back to 2% over the medium term
- Reiterates that future FOMC interest rate hikes will be gradual
- If inflation remains too low, rates would be more gradual. If inflation heats up, rate hikes would come more quickly
- Expected GDP growth rate will drive more job market gains. Sees US GDP around +2.2%
- Would not be surprised if future growth rate cooled off