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October rate hike still possible: Fed's Lacker tells DJ

Federal Reserve Bank of Richmond President Jeffrey Lacker
Kevin Lamarque | Reuters
Federal Reserve Bank of Richmond President Jeffrey Lacker

The Federal Reserve could still raise interest rates this month, Richmond Fed President Jeffrey Lacker said Thursday.

"I don't see why not," Lacker told The Wall Street Journal. "We will have another labor market report. Presumably that will move us further toward labor market improvement."

The Labor department is scheduled to release the nonfarm payrolls report for September.

Lacker also said Fed officials will have more information about the strength of consumer spending when their next meeting begins. "It looks like consumers have continued to spend in August despite all of the turmoil and it seems like that is carrying over into September," he told the newspaper.

The Fed kept interest rates low during its last monetary policy meeting, a decision to which Lacker dissented.

However, Fed Chair Janet Yellen said last week that a rate hike would be appropriate "sometime later this year."

"Most of my colleagues and I anticipate that it will likely be appropriate to raise the target range for the federal funds rate sometime this year," Yellen said.

New York Fed President Bill Dudley also echoed Yellen's remarks on Monday, saying the Fed will "will probably raise rates later this year."

Click here for the full Wall Street Journal story.

— Reuters contributed to this report.