Fed's Lockhart: rate rise still likely this year
The progress in the US economy is still consistent with a Federal Reserve rate rise "relatively soon" said Dennis Lockhart, the chief of the Atlanta Fed.
In a speech in New York, he said a hike from current near-zero levels was likely going to be appropriate in either the October or December meetings, reports Sam Fleming.
However Mr Lockhart also acknowledged that the evidence had become more ambiguous because of mixed economic readings of late, and that there was "a touch more downside risk" than a few weeks ago.
He said the recent economic numbers, including weaker job growth data last week "have not provided much confirmation that my narrative still holds."
Mr Lockhart said:
I believe the economy remains on a satisfactory track, and, speaking for myself, I see a liftoff decision later this year at the October or December FOMC meetings as likely appropriate.
However, the data are giving off varied signals, and there is more ambiguity in the current moment than a few weeks ago. In my opinion, the situation calls for especially diligent monitoring of incoming data with particular attention to consumer activity."
Mr Lockhart is seen as a centrist on the Federal Open Market Committee so his views are carefully watched by markets.
He added:
My staff and I are always paying attention to incoming data, but the ambiguity of the moment reinforces the need to closely watch the vital signs of the economy over the coming weeks to determine if the outlook has changed.