Fed’s Tarullo Can’t Rule Out Rate Hike This Year

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.

via CNBC

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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