Fed's Lockhart Calls for "Bipartisan, Credible Long-Term Plan to Stabilize the Deficit"

The President of the Atlanta branch of the Federal Reserve, Dennis Lockhart, made some important statements regarding our fiscal situation. While the Federal Reserve has no authority over our fiscal policy, the fact that more and more Fed officials are calling on our policymakers to deal with our fiscal house should be seen as a wake-up call that the time to delay is over. Lockhart urges fiscal reform because, as he states, good fiscal policy should be combined with good monetary policy in order to strengthen our economy.

Lockhart remarked that the U.S. must "come to grips" with our fiscally unsustainable path, and called for a "bipartisan, credible long-term plan to stabilize the deficit." He is absolutely right, and enacting a plan should be a priority for policymakers this year. With President Obama's budget being released Monday and the debt ceiling debate about to be in full swing, the time is right for such a plan to take shape.