www.varchev.com

Fed's Lockhart: Hike possible as early as April

Rating:

12345
Loading...

The Federal Reserve could hike interest rates as early as next month, Atlanta Federal Reserve President Dennis Lockhart said Monday.

The Federal Open Market Committee's "patient approach" in keeping its interest rate target unchanged last week made sense, he said in prepared remarks for the Rotary Club of Savannah. The FOMC next meets on April 26 and 27.

Lockhart, who does not vote on the committee, said he expects continued job market improvement this year. He said he is optimistic the Fed's 2 percent inflation target is possible in the medium-term.

Earlier on Monday, Richmond Fed President Jeffrey Lacker took a similar tone on inflation, saying it will likely accelerate in coming years and move toward the Fed's target.

Inflation has been unusually sluggish since the 2007-2009 recession.

The Fed has kept interest rates low in part to foster faster price gains and said last week it was likely to raise interest rates more slowly than policymakers had expected in December.

The U.S. central bank noted in its Wednesday policy statement that financial market-based measures of expected inflation were low.

"Although recent declines in inflation compensation do give me some pause, I think the evidence indicates that inflation expectations ... remain well-anchored," Lacker said at an international central banking conference in Paris. He cited studies that suggest public expectations of inflation guide actual price changes.

Lacker, known as a hard-liner on the Fed's duty to keep inflation from running much above 2 percent, said U.S. inflation was bound to increase significantly after the price of oil bottoms out. He said inflation outside food and energy would move back toward 2 percent once the U.S. dollar stops appreciating.

Lacker is not a voting member on the Fed's rate-setting committee this year but participates in its discussions.

CNBC


 Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy