Fed Governor, the Richmond Fed (Federal Reserve Bank of Richmond President) Main Xilai Ke (Jeffrey Lacker) Friday (14) said it expects to improve as the economy, the Fed will reconsider its bond purchase plan.
Lake said today, "Despite the improved economic outlook may not be enough to ensure the adjustment of the extent of our recent purchase plan, but I expect the next few months as the economic development of the situation, the Fed will be re-evaluated."
Lake argued that the Fed will face the challenges of quantitative easing revaluation on the grounds that with the improvement in economic growth, relative to the trend before the recession, the level of economic activity may not accurately reflect the needs of real interest rates increase.
He said the economy has turned into last summer's "weak points", he expects 2011 gross domestic product (GDP) growth rate will reach 3.5 to 4 percent or so. Active consumer spending, business investment strong and steady demand for U.S. exports should boost economic growth, while the housing market may be out of the trough.
Lake expected inflation rate in 2011 will reach 1.5 to 2% or so. He said that despite facing many difficulties ahead, the economy is still a long way to go.