July 11 A centrist Federal Reserve policymaker
said on Friday near-zero U.S. interest rates will likely be
appropriate until the second half of next year, adding he'll
need a few more months of data to determine whether inflation is
really headed up to the U.S. central bank's 2-percent target.
Dennis Lockhart, president of the Atlanta Fed, said he would
even be comfortable overshooting the target, perhaps to 2.5
percent, as the Fed adjusts policy to react to an improving
economy. Speaking on Bloomberg TV, he added there is no rush to
shrink the Fed's bloated balance sheet once rates start to rise
as long as policymakers were able to control short-term rates.
(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)