Fed’s Lockhart: October is live meeting but will need time to evaluate volatility
Comments from the Fed’s Lockhart:
– Year-end market is not a barrier to December rate hike
– Fed has significant amount of time it can wait to begin reducing balance sheet
The bolded point is a good one and suggests the Fed realized that going into a meeting with a 50/50 split in markets wasn’t going to help anyone. When they finally raise rates, it’s imperative that it’s clearly signaled ahead of time.