Richmond Federal Reserve President Jeffrey Lacker told a
business association in Raleigh, North Carolina, that he was
confident inflation, which has been under the Fed's target for
roughly three years, would move higher soon barring an
unexpected shock to the economy.
He said the four rate hikes that Fed policymakers generally
expect will be needed this year could be off the mark if
inflation moved "rapidly" toward 2 percent once oil prices
bottomed out and the value of the dollar peaked.
"A more aggressive path would be in order," Lacker said, adding
that he saw early signs of faster wage growth.
But if inflation did not soon move back toward 2 percent
following a bottoming out of oil prices and a dollar peak, "a
shallower path for interest rates would make sense," said Lacker,
who is not a voting member of the Fed's rate-setting committee
this year.
(Reporting by Jason Lange; Editing by Paul Simao)
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