Dec

19

 As predicted now that the president is to be Trump, all the hawks from the Fed have been let out of their cages, and talk about the virtues of a hot economy, the meme that the humorous chair pulled out to help the cattleist onto victory has been put back in dungeon.

Fed Hawk Lacker Says May Need More Than Three Hikes in 2017 

By Steve Matthews (Bloomberg) –

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 panel discussion in Charlotte, North Carolina.

"There is a range of paces of interest rate hikes that would qualify as gradual, including paces more rapid than one or two or three a year," he said. "We can get where we need to be with a pace of increases that qualifies as gradual." His next scheduled turn as a Federal Open Market Committee voter is in 2018.

Investors have sold bonds this week in anticipation the U.S. central bank will accelerate policy tightening next year, pushing yields on the 10-year Treasury note to 2.60 percent from2.47 percent on Monday.


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