The Washington Post published an interview with Lacker today. Here are the highlights:
- "I never completely make up my mind before a meeting, but at this point it looks to me as if the case for raising rates looks to be pretty strong in June."
- Inflation is moving decidedly toward 2 percent
- Labor markets have tightened very significantly
- Downside concerns have dissipated
- Markets may be extrapolating from our recent behavior and thinking all we do is delay
- I think the first quarter seems pretty clearly to be a transitory dip in growth
- I think we're clearly seeing now signs of increasing wage inflation
- Surprised by pessimism after non-farm payrolls; details were strong
- Lacker isn't a voter this year or in 2017
He lamented that the Fed delays when uncertainty rises but never makes up ground when the situation normalizes.
Overall, it's a candid interview (read it here). Even though he's a hawk, it still comes across as particularly hawkish.
The problem is that everyone who has bet on comments like these turning into action has been burned beyond recognition.
