Lockhart: Policy Needs To Stay Accommodative

The economy has given signs of sustained recovery this year, but central bankers must keep U.S. policy accommodative, according to Federal Reserve Bank of Atlanta president Dennis Lockhart.

Energy goods and service prices jumped 4.7% in December.

Lockhart described the progress as “real, but fitful” and said it’s too soon to declare victory over the economic crisis that spawned the 18-month recession that ended in June 2009.

He also told students at Miami-Dade College that employment is “nowhere near acceptable levels,” according to a prepared text of his remarks.

“The appropriate outlook at this juncture is one of cautious optimism, avoiding overstatement of the likely speed of improvement,” Lockhart said.

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