Fed's Lockhart: Rate Hike Still Unlikely Before Mid-2015

Wednesday, 06 Aug 2014 05:23 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Atlanta Federal Reserve Bank President Dennis Lockhart said on Wednesday that despite recent strong U.S. economic growth he still feels the Fed should not raise interest rates until likely the second half of next year.

Speaking on CNBC, Lockhart said strong second-quarter gross domestic product growth was partly a rebound from the dismal start of the year and may not be sustained. More evidence is needed, Lockhart said, before he is convinced the economy is ready to absorb higher rates without a risk to the recovery.

"It is a little early to conclude that the economy is going to grow that fast in the third quarter," said Lockhart, who does not currently have a vote on the Fed's main policymaking committee. "Sometime mid-year, next year, onward is likely to be the right time ... I am still looking for an accumulation of validating data."

He said his focus was on growth and ensuring the recovery is maintained.

"I am just simply looking for more evidence that we are on the track that we think we are on ... and it is going to take a while to be sure of that," he said. There was little risk, he said, of a "breakout of inflation to the high side ... That is simply a low probability."

The debate at the Fed over a future rate hike has been intensifying, with one dissent at the U.S. central bank's latest rate-setting meeting and some policymakers becoming more vocal about the possible need to raise rates sooner as the economy strengthens.

Lockhart is considered a centrist in that debate and said in the interview that he was "slower on the trigger" than members like Dallas Federal Reserve President Richard Fisher who feel the Fed needs to act sooner.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Here's Why Most Unemployed Americans Don't Get Benefits

Saturday, 22 Nov 2014 10:35 AM

Even though the U.S. job market is gaining strength, there are still a lot of unemployed Americans. Yet only a fraction  . . .

Kudlow: Obama's Big Mistake Is Ignoring High-Skilled Visa Problem

Friday, 21 Nov 2014 22:08 PM

Obama’s executive actions not only usurp powers that are not his, they don’t really solve key immigration problems. . . .

Furchtgott-Roth: Obama's Immigration Edict Is Windfall for Wal-Mart

Friday, 21 Nov 2014 17:47 PM

President Barack Obama's immigration edict is likely to enrich Wal-Mart because the previously undocumented millions wou . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved