Fed's Lockhart (moderate, FOMC alternate): There are concerning aspects to low inflation and weak jobs market, supports a similar level of tapering as seen in December through the remainder of 2014 if the economic picture stays positive - Low monetary policy rate will remain appropriate well after the point when unemployment drops below 6.5% - The December jobs report was surprisingly soft. The decline in the unemployment rate likely overstates the health of the job market. - Downside risks to the economy have lessened, uncertainty holding back the economy has declined, upside growth surprise has become more likely this year. - Entering 2014 on a more solid economic footing, sees 2014 GDP +2.5-3.0%. - Taper decision was based on economic assessments. Tapering will continue if the recovery continues. - Repeated false starts to the economic recovery means we must remain cautious. - There has been a disinflationary trend for the last two years, expects inflation to turn around as growth speeds up. - There is little upwards wage pressure to drive inflation. - Appreciation in the stock market does not look like it is a bubble, however would like to see corporate earnings validate stock market gains - Q&A - A broad range of indicators shows that inflation is too low.