Fed’s Lockhart Calls for Serious Discussion About Rate Hike

Federal Reserve Bank of Atlanta President Dennis Lockhart repeated his call for a “serious discussion” about raising interest rates at the U.S. central bank’s meeting later this month, even after some recent disappointing economic indicators.

“Notwithstanding a few recent weak monthly reports — from the Institute for Supply Management, for example — I am satisfied at this point that conditions warrant that serious discussion,” Lockhart said Monday in Atlanta.

The policy-setting Federal Open Market Committee meets Sept. 20-21. Recent comments from committee members point to a division over the need to raise interest rates. Fed Governor Daniel Tarullo on Friday repeated a cautious assessment of the economy, while Boston Fed President Eric Rosengren argued there was a reasonable case for gradual tightening.

Investors will also listen closely to remarks at 1:15 p.m. New York time from Governor Lael Brainard, who has argued for patience in raising rates, for final clues before the central bank enters its traditional self-imposed quiet period before a meeting.

Minneapolis Fed chief Neel Kashkari, in an interview on CNBC Monday, said he saw no urgency to act and preferred to see more upward movement in core inflation.

via Bloomberg

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza