Speaking at a conference on Saturday, Dennis Lockhart, Atlanta Fed President (non-voter) said inflation levels were 'elevated' and that a slowing U.S. economy would have global repercussions.
He also pointed out that the U.S. economic slowdown was technically not a recession and that the second quarter could very well deliver some economic growth.
Nevertheless, a slowdown should have a disinflationary impact and that early indication could suggest 'softening' of prices.
Lockhart also said he expected the U.S. dollar to remain with world's dominant currencies.
By Erik Kevin Franco