Fed's Lockhart: Yuan, US dollar and oil prices complicate US outlook

Comments from Atlanta Fed President Dennis Lockhart:

  • Expects Fed to begin raising rates this year
  • US wage growth well below pre-recession rates
  • Fed policy normalization to 'proceed gradually'
  • Expects moderate growth, rising inflation

He laid off the hawkish rhetoric and cracked open the door to backing down from his near-promise to vote for a rate hike in September.

Lockhart spoke in Berkeley, California and the topic of his speech was public pension funding reform. He is expected to have a Q&A later.

For the rest of the Fed calendar this week, there is Dudley on Wednesday and the Vice Chair Stanley Fischer on Friday at Jackson Hole.

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