Wednesday, August 5, 2015

Atlanta Federal Reserve President Says Fed Is ‘Close’ to Being Ready for Rate Hike

Federal Reserve Bank of Atlanta President Dennis Lockhart says the economy is ready for the first increase in short-term rates in more than nine years and it would take a significant deterioration in the data to convince him not to move in September.

The idea that the Fed is not considering a rate hike is just wrong. Indeed, I believe a rate hike will occur as long as unemployment ticks down to 5.2% or lower (The last reading was 5.3%) and a stock market crash does not occur before the September 16-17 Fed monetary policy meeting.

In the EPJ Daily Alert, I am not ruling out a crash, but I do not believe it is anywhere close to a certainty.

  -RW 

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