4/5/2017, 9:13 AM (Source: TeleTrader)
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Lockhart: More ground to be gained in US with jobs

Central bankers in the United States remember the effect of the taper tantrum and they are careful not to let it repeat, said Dennis Lockhart, the recently retired president of the Federal Reserve Bank of Atlanta. Speaking about the economy of the United States in an interview with CNBC on Wednesday, he said he sees "more ground to be gained" in employment.

It is "important to prepare the markets for any policy move," the former Fed's official stated and warned spillovers from financial activity to the real economy are possible. He said Ben Bernanke, the prior chief of the central bank, has taken "direct action" by introducing press conferences and other measures to boost transparency.

Members of the rate-setting Federal Open Market Committee don't coordinate what they will say during public appearances, as their independence is respected, according to Lockhart, who added this is why it is "hard to interpret what the message is." Policymakers "cannot directly react to market moves," but they rather focus on the real economy, in his words.

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