Fed Hawk Lacker Says May Need More Than Three Hikes in 2017
- Says he doesn’t know if Fed is behind the curve on inflation
- Richmond Fed chief says prudent to assume some fiscal boost
Can Markets Handle Positive Real Rates?
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Jeffrey Lacker, one of the Federal Reserve’s most hawkish policy makers, warned that the U.S. central bank may have to raise rates more than three times next year and said he doesn’t know if policy makers are already behind the curve on inflation.
“If we were to see a burst of demand growth, that would suggest a steeper path of rates to maintain price stability,” the president of the Federal Reserve Bank of Richmond told reporters Friday after taking part in a in Charlotte, North Carolina.