Two Fed Officials Urge Caution on Timing of Next Rate Hike
- Fed ought to wait for higher inflation: Philadelphia's Harker
- Dallas Fed's Kaplan says patience warranted until GDP improves
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Two Federal Reserve officials argued for caution over the timing of the next interest-rate increase as a stronger dollar and weakness abroad hinder efforts to drive inflation higher, while a third policy maker said the case for a hike was clear.
Philadelphia Fed President Patrick Harker and Dallas Fed chief Robert Kaplan’s remarks Tuesday echoed Chair Janet Yellen’s call for a slow approach to policy tightening that has reinforced expectations that officials won’t act when they meet on April 26-27. Richmond’s Jeffrey Lacker later argued in favor of tightening, while San Francisco’s John Williams said that two or three increases this year was a reasonable call.