Don’t miss the latest developments in business and finance.

Fed's Lockhart sees 'scope for three' rate hikes this year: Nikkei

Image
Reuters
Last Updated : Mar 31 2016 | 10:28 PM IST

REUTERS - The Federal Reserve could raise interest rates as many as three times this year, a centrist policymaker said on Thursday, beginning with a potential but not absolutely necessary rate hike next month.

"I do not expect four increases, but I think there is scope for three," Atlanta Fed President Dennis Lockhart told the Nikkei Asian Review in an interview, according to a transcript published on the outlet's website.

Most Fed officials see two rate hikes this year as appropriate, but Lockhart's comments suggest that officials could take a slightly more aggressive approach to raising rates if economic data continues to be positive.

The Fed next meets in mid-April to decide on a policy setting.

Still, Lockhart stopped short of suggesting he is fully convinced that a faster pace of rate hikes is necessary.

"I don't see a lot of risk of a policy error from an approach that is patient and deliberate," he said, according to the transcript. "So even with good data, it will not be mandatory that we move in April."

More From This Section

(Reporting by Ann Saphir; Editing by Meredith Mazzilli)

Also Read

First Published: Mar 31 2016 | 10:11 PM IST

Next Story