- Jeffrey Lacker, president of the Richmond Federal Reserve Bank
Vice Chairman of Federal Reserve Stanley Fischer noted during his speech in Israel that there is too much importance placed on the first hike of federal fund rate and the process of returning back to the pre-crisis level will take some time. Since the markets expect raising the rate in September, Fischer said it will be driven by data and not by date. Fischer said that the US central bank might push back the timing of the interest rate hike if slower-than-expected foreign growth affects the US economy. The Fed's Vice Chairman predicts the interest rate will range between 3.25% and 4% by 2017-2018. He also highlighted that the Fed cannot act as the world's central bank, and must first and foremost seek US domestic goals of maximum employment and stable prices.
Another FOMC voting member, president of the Richmond Federal Reserve Bank, Jeffrey Lacker, in his Tuesday's speech said that he has not still decided on his voting on June's FOMC meeting about increasing the Fed's interest rate that has been maintained at a record low of 0% to 0.25% since December 2008. However, with inflation firming and the economy recovering from a soft growth in the first quarter, there may still be a case for hiking interest rates next month, he said. Lacker also addressed Lacker two main problems in the US financial system: namely, the Fed's emergency lending powers and Title II of the Wall Street Reform Act of 2010.
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