Fed’s Lacker: Rate Rises Will Depend On Economy’s Path – Real Time Economics

Federal Reserve Bank of Richmond President Jeffrey Lacker said Friday he isn’t ready to say when the U.S. central bank should raise rates.

Mr. Lacker was speaking in Charlotte, N.C., as part of a panel discussion followed by questions from reporters. The official will gain a vote on the monetary-policy setting Federal Open Market Committeenext year. Most central bankers reckon the Fed will raise rates in 2015, with key officials favoring an increase around the middle of the year, assuming the economy performs as they expect.

Federal Reserve Bank of Richmond President Jeffrey Lacker
Bloomberg News

“I support the characterization that we can be patient at this point and that characterization could change from meeting to meeting for me,” Mr. Lacker said. When it comes to boosting rates, it will come down to the data, he added.

“My sense is that growth has a better chance of picking up on a sustained basis this time,” Mr. Lacker said. As for deciding when to raise rates, “I’m looking for information that has to bear on how sustained that growth trajectory we’re on is going to be,” he said.

Mr. Lacker also cautioned it is important for the Fed to raise rates before inflation pressures rise too much.

The Richmond-based central banker has frequently been skeptical of aggressive Fed actions to spur better growth and hiring, and he has frequented worried Fed policies could set the stage for a future inflation surge.

Related coverage:

Fed Sticks to Patient Tack on Rates

Economists React to the Fed’s December Decision: ‘What Was The Point!’

Fed Officials’ Forecasts See Slower Pace of Rate Rises

Fed’s Yellen Says No Rate Hike Likely For a Couple of Fed Meetings

Fed Gets Rare Hat Trick of Dissent

Fed’s Janet Yellen Not Worried About Falling Oil Prices, Russian Turmoil

Yellen Says She Has Great Confidence in New York Fed’s Dudley

Parsing the Fed: How the Statement Changed

What’s the Difference Between ‘Patient’ and ‘Considerable Time’?

Read the Full Text of the Fed’s Statement

Live Blog Recap: Fed Decision and Janet Yellen’s Press Conference



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19 December 2014 | 7:58 pm – Source: blogs.wsj.com


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