Federal Reserve Bank of Atlanta President Dennis Lockhart said he favors raising interest rates this month, adding to signs that the central bank will proceed with its first increase since 2006, reports Bloomberg.
“Absent information that drastically changes the economic picture and outlook, I feel the case for liftoff is compelling,” Lockhart said this morning in Fort Lauderdale, Florida.
“I think the economy is closing in on full employment,” Lockhart said. “The trend in wage growth has been weak for some time, but it may be picking up.”
“Comparing this and like calculations to headline numbers suggests to me that much of what’s suppressing inflation is transitory in nature,” he said. “I have bought into that view.”
It should be noted Lockhart is no outlier on the FOMC, he goes with the prevailing majority view. He has never dissented from an FOMC decision, adds Bloomberg,.
The Federal Open Market Committee's next monetary policy meeting is Dec. 15-16, with a statement on interest rates due out on the 16th at 2:00 PM ET.
Okay, you guys that think the Fed is bluffing, let's hear it in the comments. Do you really still think so?