Fed’s Lockhart Says Central Bank to Be Accommodative For Years

The Federal Reserve will remain accommodative for years with a mix of tools, and it won’t taper its bond-buying until the economy is ready and financial markets are prepared, Atlanta Federal Reserve President Dennis Lockhart told CNBC on Friday.

The minutes from the Fed’s October meeting—released on Wednesday—intensified speculation in the market of a sooner-than-expected reduction of the Fed’s $85 billion monthly bond purchases.

In a “Squawk Box” interview, Lockhart stressed asset purchases and the future of short term interest rates are not tied together. “We are going to remain very accommodatitve for quite some time, in all likelihood a number of years.”

There’s been quite a bit of progress on the job front, but the anticipated faster economic growth in the second half of this year has not materialized, he said.

Lockhart, a nonvoting Fed member this year, said he fully expects to talk about the possibility of tapering in the upcoming meetings.

via <a href=”http://www.cnbc.com/id/101220738″>CNBC</a>

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