Fed Lacker Says Rate Hike Should Happen Sooner Rather Than Later

With the majority of market watchers expecting the Federal Reserve to stand pat on interest rates at the next meeting, Richmond Fed President Jeffrey Lacker said the next rate increase should happen sooner rather than later.

Lacker spoke on Tuesday in Newark, Delaware, at the University of Delaware 2017 Economic Forecast panel discussion.

“Rates need to rise more briskly than markets now seem to expect,” he said in prepared remarks. “And the elevated uncertainty now surrounding fiscal policy, particularly the potential for substantial fiscal stimulus, suggests that our next increase should come sooner rather than later in order to reduce the risks associated with having to raise rates more rapidly later on.”

Earlier this month, the Federal Open Market Committee (FOMC) decided to keep the target range for the federal funds rate at 0.5 to 0.75 percent.

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