Lacker Sees Fed May Need to Raise Rates in Mid-2013

Federal Reserve Bank of Richmond President Jeffrey Lacker said the U.S. central bank may need to increase the benchmark interest rate by the middle of next year to curb inflation as the economic expansion gains strength.

“My current assessment is that an increase in interest rates is likely to be necessary by mid-2013 in order to prevent the emergence of inflationary pressures,” Lacker said today in a statement on the regional bank’s website.