Lockhart Says ECB Hike Won’t Affect Fed, May Influence Dollar
Federal Reserve Bank of Atlanta President Dennis Lockhart said the European Central Bank’s decision to raise interest rates yesterday won’t influence his view of U.S. central bank policy.
“I don’t see that a move by the ECB has any particular influence on our policy posture here in the United States,” Lockhart told reporters after a speech in Knoxville, Tennessee. “Obviously by increasing the differential between short-term rates in the U.S. and short-term rates in the euro zone, you can see some influence” because “exchange markets are affected by short-term rates. I think some of the dollar selloff reflects some extent of that.”
The European Central Bank yesterday lifted interest rates for the first time in almost three years to curb inflation.
To contact the reporters on this story: Steve Matthews in Knoxville, Tennessee, at 1310 or smatthews@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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