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Friday, October 30, 2015

Richmond Fed's Lacker: Wanted rate hike due to 'steady growth'

Here's the full remarks;
"I dissented because I believe that an increase in our interest rate target is needed, given current economic conditions and the medium-term outlook. My assessment is essentially unchanged from the Committee's September meeting, at which I also dissented. My reasoning was based on my belief that with the steady growth in output and household spending that we have been observing - and expect to continue - the real (inflation adjusted) rate of interest should be higher than its current level of less than negative 1 percent. My assessment was also supported by labor markets that had tightened considerably and my confidence that inflation will return to our 2 percent objective after the temporary effects of low energy and import prices have passed."
"The Committee's decision not to raise rates in September was influenced, in part, by global financial and economic developments in the weeks before that meeting. I did not believe at the time that the uncertainty stemming from those events was sufficient to justify further delay in policy normalization. The data we have received since the September meeting have strengthened my confidence that those events are not likely to change the medium-term outlook for U.S. growth and inflation. So I remain convinced that it is time to better align our interest rate policy with the economy's past progress and ongoing growth."
"I recently expressed my views in a speech to the Richmond Retail Merchants Association titled 'The Case Against Further Delay.' My views on the economy and monetary policy are also available on richmondfed.org."

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