Description
Jeffrey Lacker (FOMC Voting Member) speaks to the Economics Club of Hampton Roads Economic Conference sponsored by Old Dominion University's College of Business and Public Administration on the "Economic Outlook, May 2012,' and will answer questions from the audience and from the media, in Richmond.

Highlights
Richmond Fed President Jeffrey M. Lacker spoke early this afternoon (ET) and continued with his view that the FOMC guidance language is inappropriate. The statement says exceptionally low rates are likely through 2014. Lacker states that he sees a likely need to raise rates in 2013. He also says that monetary policy is conditional upon future data on the economy. Other Fed officials agree with this position on conditionality. However, Lacker says that currently, the Fed is not supplying too much liquidity to the economy.

On inflation, Lacker sees improvement from lower gasoline prices in recent weeks. He calls inflation expectations to be well anchored. On labor markets, the Richmond Fed president anticipates slow but continuing progress in job gains. The bright spots of the economy are multifamily housing and business investment. The big uncertainty is fiscal policy with pending tax increases and budget cuts.