Fed Lockhart Sees 2 Rate Hikes in 2016

The United States could see two further interest rate rises this year but uncertainties abound including the impact on the U.S. economy should Britain vote to leave the European Union, Atlanta Fed President Dennis Lockhart said on Tuesday.

“Two rate hikes are certainly possible. We have enough (Fed policy) meetings remaining but it depends entirely on how the economy evolves,” Lockhart told reporters in Amelia Island, Florida.

On that front, Lockhart said that incoming data between now and the Fed’s next meeting on June 14-15 “is not comprehensive by any stretch of the imagination” and that the upcoming Brexit vote in Britain raised risks.

“It is the repercussions for the U.S. economy that would concern me…it’s really a question of indications in financial markets of a reaction to rising uncertainty and the degree of volatility we are seeing again in financial markets,” he said.

The U.S. central bank kept interest rates unchanged last week and showed little sign of urgency in raising rates again.

via Reuters

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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, Alfonso Esparza 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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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