Atlanta Federal Reserve President Dennis Lockhart said Monday it's too early to estimate fiscal policy effects, in his written remarks at a local event. That's a contrast from some of his colleagues who priced in some upside risk due to increased fiscal expectations. Lockhart added it is unclear whether the economy is positioned for markedly higher growth. Gross domestic product (GDP) is forecast at around 2% over the next few years, less optimistic than several others on the Committee, and below the markets' hopes. Inflation is projected to move to 2.0% this year or next. Lockhart still looks for a gradual pace of rate hikes, saying it's time for the policy to shift to "more of a support role" as the new administration comes into play.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.