"There is a chance, and I think people need to be aware of it, that our current anticipation about being able to sort-of go gradually is just an expectation, and we might have to change our mind about that"
- Jeffrey Lacker, Richmond Fed President
Fed officials supported a possible December interest rate hike with one key policy maker saying the risk of waiting too long was now in balance with the risk of moving too soon to raise rates. With a rate hike this year now seen as very likely, the focus is shifting towards the pace of lifts. St. Louis Fed President James Bullard said that the pace would depend on the state of the world's number one economy and should not be seen as a steady path higher. Bullard believed growth would be strong, and the jobless rate should slip into the 4% range. At the same time, a key ally of Fed Chair Janet Yellen, New York President William Dudley, said that he saw the pace of tightening to be quite gradual. With regards to the US inflation, consumer price growth was predicted to accelerate to 1.5%, from 1.3%, as pressures related to the strong Greenback and low energy prices subside, Fed Vice Chair Stanley Fischer said. The US Dollar has gained about 15% since mid-2015 as the Fed was preparing markets for a rate hike, other major central banks added stimulus, and as investors crowded into US-denominated assets in the face of slowdowns elsewhere.
Meanwhile, US jobless claims remained unchanged last week at a seasonally adjusted 276,000, according to the Labor Department.
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