Fed’s Lockhart: ‘Serious discussion’ over rate rise warranted

Current economic conditions warrant a “serious discussion” of whether to raise interest rates at next week’s Fed meeting, Atlanta Federal Reserve Bank president Dennis Lockhart said on Monday in remarks that may raise the likelihood of Fed action.”

If 1.6 percent inflation and 4.9 percent unemployment were all you knew about the economy, would you consider a policy setting one tick above the zero lower bound still appropriate?” Lockhart said in a morning address at the National Association of Business Economists. “I think circumstances call for a lively discussion next week.”He added in later comments to reporters that there was no “urgency” to act at any particular meeting as the Fed debates whether its current ultra-low interest rate remains appropriate for an economy that is “chugging along.”ADVERTISINGinRead invented by Teads”I don’t feel that we are incurring costs of patience that put a lot of urgency on the question of raising rates,” Lockhart said. “It is much more the committee deciding what is the right calibration of the policy rate to the state of the economy and the outlook.”
Source: Fed’s Lockhart: ‘Serious discussion’ over rate rise warranted | Reuters

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