Fed's Lockhart (moderate, FOMC alternate): Reiterates first Fed rate hike will likely be in second half of 2015
GDP of around +3% is needed to justify rate hike
- Expects US GDP to approach 3% in Q2 of 2014 and beyond.
- At current rate, taper will be finished by the end of 2014.
- Weather impacts on US data were meaningful in Q1.
- There is still a considerable amount of slack in the economy, especially in the job market.
- Inflation should firm up and be higher over the medium term.