Fed's Lockhart doubts economy poised for much higher growth that many anticipate

The economy should expand at a moderate pace around 2% next year but expectations of higher growth are likely unrealistic, said Atlanta Fed President Dennis Lockhart on Monday. "The economy today is well positioned for moderate growth and steadily improving conditions," Lockhart said in a speech to the Rotary Club of Atlanta. "It's less certain that the economy is positioned for a breakout to markedly higher growth on a sustained basis," he said. The Atlanta Fed president said many investors seem to be anticipating improved growth prospects with the change of administration in Washington. He said he was not factoring fiscal stimulus into his forecast because of the lack of specifics. To get a breakout, policy would have to be designed to offset demographic drags and accelerate productivity, he said. Lockhart is retiring at the end of February after ten years at the helm of the Atlanta regional Fed bank.

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