-Jeffrey Lacker, Federal Reserve Bank of Richmond President
June is an appropriate timing for the first interest rate hike in the US, according to Federal Reserve Bank of Richmond President Jeffrey Lacker's opinion. Still, the normalisation of the Fed monetary policy continues to depend on economic data, but it should be unexpectedly soft in order for Lacker to change his view. In a press conference following the December FOMC meeting, Fed Chair Janet Yellen said the committee was unlikely to alter rates in its subsequent two meetings. That suggest dropping the phrase at the March 17-18 FOMC gathering should the Fed considers raising rates in June.
San Francisco Fed President John Williams also said that the US central bank was getting "closer and closer" to rate hike, referring to "really strong" hiring. US jobless rate stood at 5.7% in January, compared with a post-recession high of 10% in 2009, while payroll gains averaged around 336,000 over the last three months, the strongest since a comparable period ended in November 1997. However, falling oil prices have kept inflation considerably below the 2% targeted level, which the Fed considers as price stability under its dual mandate. The central bank's closely followed reading of price pressures climbed by 0.7% in December compared with the same month last year. Yellen has said central bankers should be "reasonably confident" consumer prices are heading higher before interest rate lift-off this year.
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