A top Federal Reserve Bank official has said that the recent “murky” US data run has made him take stance against the much-speculated interest rate hike in June.
Atlanta Federal Reserve Bank president Dennis Lockhart on Thursday said that the recent US economic data report has made him leaning against a June rate increase, adding that he is confident the US economy will remain on track.
“I would lean to a little later versus a little earlier. I don’t think it is a stark decision where we are risking a lot by going with one date versus another date. So I don’t take June off the table it is just not my preference,” said Lockhart.
According to him, a disappointing employment report in March and other related economic factors are making the country’s economy tough to read. The Fed official said that he is expecting that the signs of weakness will turn transitory. He, however, needs more evidence to become sure.
The Federal Reserve Bank has announced that it will be considering increase in the key rates on a meeting-by-meeting basis, commencing in June this year. It has not raised key rates since 2006. Moreover, its main lending rate has remained at a near-zero level since late 2008 as part of the effort for repairing the damage from the financial crisis during 2007-2009 period.