Name: Jeffrey M. Lacker

Summary: Economic Outlook, January 2016: "I agree that we are in a period of lower-than-average real interest rates, and that this has implications for monetary policy. The important point to recognize, however, is that actual real interest rates — at about negative 1 ¾ percent — are now substantially below estimates of the current natural rate, which as I noted are around zero. Moreover, while the natural interest rate is lower than usual right now, over time one might expect it to rise as it reverts toward its longer-run mean. So despite the relatively low natural real interest rate, there are still strong reasons to expect real short-term interest rates to rise in the near term."

Lean: Hawkish

Substantially Similar to Prior Statements: Yes

Statement Date: January 12, 2016

Publication Date: January 12, 2016

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