Fed’s Lockhart: Time to Hike Rates Approaching

Atlanta Fed President Dennis Lockhart said Thursday that the U.S. economy has stabilized and is almost strong enough to allow the Fed to begin raising interest rates.

Reuters: “The time is approaching when it will be appropriate to consider recalibrating interest rate policy. I do not believe that time has yet arrived,” Lockhart said in the prepared text of a speech.

“The conditions that require a change of policy are not yet at hand.

However, as the economy continues to improve and financial markets find firmer ground, extraordinarily low policy rates will not be needed to promote recovery and will become inconsistent with maintaining price stability.”

Lockhart, who became president and CEO of the Federal Reserve Bank of Atlanta in March of 2007, is not a voting member of the central bank’s FOMC this year.

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