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?
-RW
Interesting quote from Politico article yesterday titled "Could an 'Accident' by Janet Yellen Derail Clinton?"
ReplyDelete“She has two opportunities now to set expectations for a rate hike in December,” said Megan Greene, chief economist at Manulife. “And Fed members have been tripping all over themselves to say they would like to normalize policy. They have been laying down sign posts everywhere.” Greene added that the Fed very much wants to get out of the way before the election. “They don’t like to talk about it, but I think they will be moving more for political reasons than economic ones.”
Political reasons, huh? Get the hike "out of the way" for... Clinton? Maybe risk an "accident" with the economy at the same time? Wonder what Obama and his "legacy" thinks of that?
I stand by my previous prediction of a ceremonial or trivial increase in December. Just enough to say they increased rates. 0.1-.25%. I think my original prediction was 0.125%.
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