Fed’s Lacker says U.S. recovery looks sustainable

NORFOLK, Va., July 15 (BestGrowthStock) – The U.S. economy is
experiencing a moderate recovery that is unlikely to be
derailed by weak housing and persistent unemployment, Richmond
Federal Reserve Bank President Jeffrey Lacker said on
Thursday.

Speaking to a group of business executives, Lacker said
U.S. monetary policy was still at “emergency levels,” with
interest rates near zero and central bank credit to the banking
system near a record.

“Recognizing the right time to begin normalizing our
monetary policy settings is going to be hard, and reasonable
people can differ about this,” Lacker said in prepared
remarks.

“For my part, I will be looking for the time at which
economic growth is strong enough and well enough established
to warrant raising our policy rate.”

In response to the worst financial crisis in generations,
the Fed not only cut interest rates to the bone but also
undertook a host of emergency measures, including more than
$1.5 trillion in direct purchases of Treasury and
mortgage-related bonds.

Fed’s Lacker says U.S. recovery looks sustainable