Richmond Fed's Lacker: Weak Data Doesn't Mean a Weak Recovery

Saturday, July 10, 2010 , , 0 Comments


The recent spate of weaker economic data doesn’t mean the U.S. recovery is faltering, and the Federal Reserve continues to get closer to the time when it will need to raise interest rates, a top central bank official said Thursday.

“The economy is still growing,” Federal Reserve Bank of Richmond President Jeffrey Lacker told Dow Jones Newswires. While it’s true that “the risks of slower-than-average growth for a couple of quarter may be notched up a bit,” the official said “it’s important to remember recoveries are choppy and uneven in the early stages.”

Like a trained bird he drops another "choppy and uneven" to remind us all that this will not go smoothly, whether or not it's actually an upward climb towards normal.

“The apparent spread of anxiety is a bit surprising if you look at just the data,” Lacker said. He noted that reports from early in the recovery bested expectations, while the recent period has brought slower-that-forecast numbers, which should surprise no one.

“This is a recovery that will be uneven, it’s going to be choppy,” Lacker said.

We knew that already. The only people that don't are the ones who are focusing on the data. Duh.

Let us remember that we already know the data is essentially bullshit and the Fed told us that themselves.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.