Expectations and the Economy by Dennis Lockhart (Atlanta Fed President)

(via Mark Thoma)

CNBS's Steve Liesman tweets "Boston Fed's Rosengren tells #Cnbc Fed should target 7% unemployment, 2.5-3% inflation."

(via David W4ssel, via DeLong twitterstorm.)

Rosengren is echoing Evans, who Liesman interviewed on CNBC. Maybe Rosengren is the mysterious second member favoring stronger action in this article.

Lockhart admits the Fed's forecasts have been way off (maybe they should take out some insurance given the economy's susceptiblity to shocks?). He says recent incoming data however is better than expected so a double-dip is unlikely. Hopefully the better-than-expected data doesn't forestall action.

He closes with:

So, in closing, I would offer the following thought with all appropriate tentativeness and caveats. If the European situation is stabilized and put on a believable resolution path, and if the supercommittee delivers a believable fiscal plan accepted by Congress, these two developments would go a long way toward clearing the air and energizing economic activity.

???

Maybe Lockhart is one of those sarcastic types with a weird sense of humor?