Key Commentaries from Fed's Jeffery Lacker
Last night speaking at North Carolina, Richmond FED president Jeffery Lacker said that he considers the expectations issued in December to be more appropriate pace for hikes than the ones issued in March. In March meeting US policymakers reduced rate hike expectations for 2016 by 50 basis points to just two hikes of 25 basis points each.
Mr. Lacker is not a voting member this year and a well-known hawk, but there are members in this year’s board as well such as Esther George, James Bullard, Stanley Fischer, who might support Mr. Lacker’s call.
According o him,
- Adverse financial market developments have largely reversed course.
- Equity markets have retraced.
- Volatilities have receded.
- Oil price have bottomed out.
- Turmoil left no major impacts on U.S. economic activity.
While FED chair Janet Yellen has steadily warned against adverse conditions outside United States that may affect domestic economies, Mr. Lacker is worried over else.
- According to him, with firmer inflation and expectations, FED should worry on upshot to avoid the risk of sharper increase in future.
The material has been provided by InstaForex Company - www.instaforex.com
