The Federal Reserve can still hike interest rates this year, according to a key central bank decision-maker.
Atlanta Fed President Dennis Lockhart said in Monday afternoon remarks that 2015 could still see Fed tightening, and that he is “comfortable enough” with inflation to initiate a hike.
“As things settle down, I will be ready for the first policy move on the path to a more normal interest rate environment,” he said in prepared remarks. “I am confident the much-used phrase ‘later this year’ is still operative.”
The Federal Open Market Committee, of which Lockhart is a voting member, said in a statement last week that it had opted to leave the key federal funds rate unchanged. Many had speculated that the Fed could have announced its first rate hike since 2006.