Fed's Lacker says June hike should be on the agenda

Source: Richmond Fed

The Federal Reserve should consider raising rates at its June meeting, Richmond Fed President Jeffrey Lacker told the Washington Post in an interview published on Monday, saying inflation was moving toward two percent and labor markets had tightened.

"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," Lacker told the Post.

Financial markets have all but priced out a June move and Lacker, who is not a voting member of the Fed's policy-making board this year, warned that there were risks with delaying any hike.

"I think markets may be extrapolating from our recent behavior and thinking all we do is delay. We never recover."

The Fed's next policy meeting is June 14-15.