Comments from Lockhart on Bloomberg TV:
- Investors incorrect to expect QE to be ‘yanked’
- Reducing QE wouldn’t be an exit from bond buying
- Would favor considering a QE reduction in August or September
- Not a ‘foregone conclusion’ that Bernanke will retire in January
- Fed officials sent ‘mixed message’ on future QE pace
- Fed approaching a period to consider reducing QE
No market reaction to the comments. It’s all about the data right now.