We've heard from uber-dove 'good cop' Kocherlakota (demanding moar QE), Dudley's admission of Dow-data-dependence, and now its Jeff 'bad cop' Lacker's turn to stir things up. Speaking to reporters this morning, lacker explained that recent economic weakness is "transitory" due to weather, and that the FOMC Minutes, despite economists' spin, show substantial support for a June rate hike. Markets are unmoved (for now).
As Bloomberg summarizes:
- *LACKER SAYS IF IT WERE UP TO HIM, FED WOULD SELL ASSETS NOW
- *LACKER SAYS U.S. ECONOMY CONTINUES TO ADVANCE AND DO BETTER
- *LACKER SAYS WEATHER CLEARLY HAD AN IMPACT IN FIRST QUARTER
- *LACKER SAYS SOME OF THE RECENT WEAKNESS IN DATA IS TRANSITORY
- *LACKER: CENTRAL BANKS SHOULDN'T PREVENT ALL MARKET VOLATILITY
- *LACKER: FOMC MINUTES SHOW `SUBSTANTIAL' SUPPORT FOR JUNE RISE
So - it's the weather... and everything is awesome... so hike rates now... and let's have some more volatilty.