New York: A top US central banker said the Federal Reserve may be “closer than a lot of people think” to raising interest rates given the firmer recent inflation and labor data.
Charles Plosser, president of the Philadelphia Fed, said the Fed is now closer than it has been to reaching its objectives, no matter how they are measured, adding: “We should not be keeping interest rates at zero until we reach all our objectives.”
Many monetary policy rules and guidelines are now suggesting the Fed should start to tighten policy after years of accommodation in the post-crisis era,
Plosser said.
“For us to deviate from what these guidelines and benchmark rules tell us, we’d have to have pretty good reason to want to deviate from them and explain why,” he said. Reuters
