Federal Reserve Governor Daniel Tarullo told CNBC on Friday he wants to see more evidence of sustained inflation before considering an interest rate increase. But he added he can’t rule out a hike this year.
Tarullo, a voting member on the central bank’s policymaking panel, said because of false starts on inflation, he’d like to see a rise in personal consumption expenditures closer to the Fed’s 2 percent target.
He also said the economy still has room to create jobs, when considering the unemployment rate has been rather steady while nonfarm payrolls have increased.
Tarullo said investors should look at the big economic picture, not just each economic report. He added that the Fed needs to look forward, not backward, when considering monetary policy.
Tarullo appeared on “Squawk on the Street” just hours after Boston Fed President Eric Rosengren knocked the stock market lower by pushing the case for an interest rate hike.