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Regional Fed Presidents Differ on Pace of 2017 Rate Hikes

  • Boston’s Rosengren said median forecast of three is reasonable
  • Atlanta Fed chief Lockhart has more cautious forecast for two
An eagle sculpture stands on the facade of the Marriner S. Eccles Federal Reserve building in Washington, D.C.

An eagle sculpture stands on the facade of the Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg
Updated on

The U.S. central bank can increase interest rates gradually as inflation rises and the labor market achieves full employment, according to two regional Federal Reserve presidents, though they took different views on how many hikes would be needed this year.

“The economy today is well positioned for moderate growth and steadily improving conditions,” Atlanta Fed chief Dennis Lockhart said Monday. “It’s less certain that the economy is positioned for a breakout to markedly higher growth on a sustained basis.”