After Weak Jobs Data, Fed’s Lockhart Favors July-Sept Rise

Federal Reserve Bank of Atlanta President Dennis Lockhart said while recent economic weakness probably won’t persist, he favors pushing out the central bank’s first rate increase beyond the next two meetings.

“I would probably be biased toward the July or September dates as opposed to June,” Lockhart, who votes on monetary policy this year, said in an interview Monday. “We will have more data and we will give the economy a little more time to prove out the thesis that I laid out, that the first quarter was anomalous again, just like a year ago.”

Lockhart echoed Fed presidents William C. Dudley of New York and Jeffrey Lacker of Richmond, who said recent economic weakness doesn’t change their view of the outlook. Dudley earlier Monday said the path of rate increases is likely to be “shallow” once the Fed starts to tighten.