Fed's Lockhart (moderate, FOMC voter): Economic growth to pick up in Q2, initial rate hikes still likely in the June-September period
- Do not expect new tools such as overnight repos to become permanent features of Fed policy- Fed will be able to maintain substantial control over short-term rates once liftoff begins
- There is still considerable underutilization in US labor markets
- Regulators still in questioning phase in understanding shadow banking, how to control it
- Measures of employment are more accurate than measures of economic growth, should be watched closely