ATLANTA — Atlanta Federal Reserve Bank president Dennis Lockhart yesterday said that the Fed still has “considerable ammunition” and “ample scope” to change the size and composition of its balance sheet to combat the economic and financial crisis.

Lockhart, who will be voting on the Fed’s policymaking Federal Open Market Committee this year, said Friday’s December employment report shows how bad the economic picture is. He said he expects the economy to remain weak at least through mid-year with possible improvement in the second half — but also with the risk of a reverse.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.