TOKYO (Reuters) – One of the Federal Reserve’s newest policymakers on Thursday added his voice to the majority at the U.S. central bank calling for interest rate hikes amid rising business optimism and faster growth in the world’s biggest economy.
“I anticipate further gradual increases in the policy rate will be appropriate to both sustain a healthy labor market and stabilize inflation around our 2 percent objective,” Fed Governor Randal Quarles said in remarks prepared for delivery to the Institute for International Monetary Affairs in Tokyo.
US - Economy - Shape - Crisis - Metrics
“The U.S. economy appears to be performing very well and, certainly, is in the best shape that it has been in since the crisis and, by many metrics, since well before the crisis,” he said.
Investors have all but priced in another rate increase at the central bank’s next meeting, on March 20-21, and Fed officials have signaled they expect to deliver two more rate hikes before the year is out.
Quarles - Comments - Consensus - Bank - Continuation
Quarles’ comments underscore the general consensus at the central bank for a continuation under new Fed Chair Jerome Powell of the slow monetary policy tightening that was initiated...
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