The year 2014 should provide a transition, with GDP growing 2.5% to 3.0% this year, setting the stage for further tapering, Federal Reserve Bank of Atlanta President and Chief Executive Officer Dennis Lockhart said Monday.
"Although the country has made a lot of economic progress, there's a fair distance yet to go before we should be satisfied," Lockhart said in prepared remarks to be delivered before the Rotary Club of Atlanta.
While policy remains "very accommodative, and appropriately so," Lockhart said, "If the positive outlook I've outlined plays out, I would support similar tapering steps over the course of this year. Of course, the Committee will assess how things are going, economically speaking, at each meeting, and decide on the next step."
He also said he supports keeping interest rate targets where they are "well past" hitting the 3.65% unemployment rate.
With Janet Yellen taking over the helm of the Federal Reserve Board when Ben Bernanke's term expires at the end of the month, Lockhart predicted, "I do not expect the leadership change to bring a change of basic policy direction."
