Fed's Lockhart: Too soon to 'breathe easy' about outlook (by Greg Robb)

WASHINGTON (MarketWatch) -- Although conditions have improved on some fronts, it is still too soon to breathe easy about the economy, said Dennis Lockhart, the president of the Atlanta Fed Bank. Lockhart said second quarter growth may not be as dire as forecast. He said that although the economic downturn may not be as severe as feared, the recovery won't be as quick as hoped either. Inflation is at uncomfortable levels but should moderate, he said. Oil prices don't have much further to climb, he said. Lockhart will be a voting member of the Federal Open Market Committee next year. A former bank executive, Lockhart said that credit markets are more settled but remain fragile.