Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, comments from a speech

  • Rapid firming in core inflation, well-anchored inflation expectations are reason to raise federal funds rate
  • Inflation returning to 2% faster than expected; downward pressure on inflation from dollar is 'plausibly behind us'
  • US labor market is strong and growing stronger; US outlook has not changed materially since December
  • "a persuasive case for increasing the target range for the federal funds rate"

via Bloomberg & Reuters

-

Lacker with comments at the hawkish end of the spectrum, but lets not get overly simplistic with the labels and implications ... he is not as dovish as others on the FOMC but he isn't gung-ho either, adding this:

  • "My sense is that the less leisurely but still gradual pace of target rate increases that FOMC participants submitted at year-end is still more likely to be appropriate"