The Federal Reserve should maintain its ongoing bond-buying program until there are clear signs that the public is growing more confident in the labor market, Dennis Lockhart, president of the Atlanta Federal Reserve Bank, said Thursday.
In a speech in Chattanooga, Lockhart said a simple decline in the unemployment rate would not meet the test. In addition to confidence, as measured by people coming back into the labor market, Lockhart remarked that he would want to see increased flows of job seekers into the labor market. There also would have to be gains in people getting full-time work instead of having to settle for part-time work. Falling claims for state unemployment insurance would be another factor, he said. br> Lockhart reiterated "the housing sector is showing definite signs of improvement as indicated by sales, building activity, and rising house prices." He also said "consumer activity has continued to grow at a modest pace in spite of a still-weak economic picture overall." Dennis Lockhart, the President of Federal Reserve Bank of Atlanta also said he's not expecting to see strong growth of the US economy, as "the economy is stuck in a slow-growth mode," so he forecasts "continued modest growth with gradual employment gains". Lockhart also said the inflation rate seemed to be "close" to targeted 2%. br> Lockhard backed the Fed`s actions, being sure that the current very "accommodative" monetary policy is to support "still-vulnerable economy" andsolve the problems of the labor market.