|
Richmond Fed President Jeffrey Lacker, who has
long called for a prompt tightening of monetary policy, said
consumer spending, the labor market and other economic
conditions have improved significantly over the last year.
A voting member this year on Fed policy who made many familiar
arguments, Lacker predicted more improvement in the labor market
and wages in the months ahead, and 2.0 to 2.5 percent GDP growth
for the year. He said moves in the dollar and in oil prices were
likely transitory, so U.S. inflation should rise to a 2-percent
target.
"Given what we know today, a strong case can be made that the
federal funds rate should be higher than it is now," Lacker said
in prepared remarks to the Greater Richmond Chamber of Commerce.
"I expect that, unless incoming economic reports diverge
substantially from projections, the case for raising rates will
remain strong at the June meeting."
Economists expect the Fed to hike rates from near zero by June
at the earliest, though September is seen as more likely due to
weak inflation and an economic slowdown in the winter.
(Reporting by Jason Lange in Richmond; Writing by Jonathan
Spicer; Editing by Chizu Nomiyama)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
