The economic outlook is in fine share, belying all the hand-wringing about slow growth or a spurt of inflation from higher energy prices, said Jeffrey Lacker, the president of the Richmond Federal Reserve Bank on Tuesday "Growth is proceeding on a solid pace this year, and inflation is low and stable," Lacker said in a speech to the business group in Parkersburg, West Virginia. "It has now become uncontroversial to say that the outlook for overall economic activity is quite healthy," Lacker said Although there will be some moderation in the housing sector this year, this "will not pose a problem for overall activity this year or next," Lacker said "Moreover, I don't see diminished housing price appreciation as a major problem for consumer spending, since again, the primary determinant of spending is income, and we see solid and improving prospects for real incomes for the nation as a whole," Lacker said The Richmond Fed president said he saw no need to alter his earlier forecast that GDP would grow at a 3.5% rate in 2006, matching the pace set in 2005 Lacker said the inflation outlook is better now than many had expected six months ago Energy prices have not passed through to a broad range of prices of goods and services, he noted Long-term inflation expectations "look fairly good." "Both survey data and the market prices of inflation-protected Treasury securities tell us that the public expects inflation to continue to be contained. I am confident that we at the Fed have the knowledge and the will to validate those expectations," Lacker said