Dennis Lockhart, Federal Reserve Bank of Atlanta President, said that he prefers the current interest rate as the uncertainty regarding the growth and inflation prevails in U.S.
He thinks that the rates will be kept unchanged at 2 percent during the next meetings until the end of the year. But debates about raising the rates may arose if the inflation continues to accelerate, said Lockhart in an interview to Bloomberg:
From my perspective, I like policy where it is. I view the current situation as reasonably balanced, with a great deal of uncertainty around both the downsides to growth and the upsides to inflation.
Dennis Lockhart will start voting on the rate decision next year, until that he believes that the weak economic growth will help to damp the inflation. Declining oil and commodity prices should also help to fight the inflation without raising interest rate. But if consumer prices go significantly up Atalanta Fed President will support raising rates.
The Federal Open Market Committee is made up of five Washington Federal Reserve board members and five district bank presidents. Only New York Fed chief holds a permament position, while other four rotate each year. The next FOMC meeting is scheduled on September 16.
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