Asks about appropriate Fed policy given strong growth and labor market, and about the impact of DOJ subpoena on Powell and Fed nominations.
Kelly
Dennis Lockhart
The economic situation shows strong Q4 growth (5.3% annualized per Atlanta Fed GDPNow), and the economy is running pretty hot. The Fed committee will likely interpret this as a time to wait and see over coming weeks/months.
Asks if 5% GDP growth this year is possible, as suggested by the Commerce Secretary.
Kelly
Dennis Lockhart
Doubts 5% annualized run rate will hold for the full year, but expects better-than-trend growth above 2%, conceivably above 3%.
Asks if 3% is the new 2% for inflation.
Kelly
Dennis Lockhart
Inflation is elevated above the 2% target, probably running about 2.7% or more. This is a problem the committee must address.