Description
Charles Evans and Atlanta Fed Pres. Dennis Lockhart participate on a panel discussion on "The Limits of U.S. Monetary Policy" at the Milken Institute 2012 Global Conference, in Beverly Hills.

Highlights
During a panel discussion Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart made various comments on Fed policy. Inflating the economy has become a recent issue in some economic blogs and Evans stated that the Fed has "no taste" for inflation-led growth. Similarly, Lockhart said that he would be concerned about inflation reaching 3 percent. Both Fed presidents pointed to a potential fiscal cliff being a potential headwind for the economy as income tax cuts expire at the end of 2012 along with certain government spending. Evans and Lockhart indicated that the fiscal deficit needs to be addressed in the long term but not immediately but soon. Evans noted that the Fed is not even close to scaling back its balance sheet, indicating that policy is still very loose.