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Two Fed Officials Point To April Rate Hike
The US economy could withstand higher Fed rates as soon as their April 26 to 27 meeting, according to two Federal Reserve officials.
Federal Reserve Bank of Atlanta President Dennis Lockhart and S.F. Fed chief John Williams think there’s enough momentum in the economy to tighten up rate policy.
But, investors don’t see this happening, as interest rate futures are priced around an 8% chance of an April hike, down from 27% a week ago, Bloomberg reports.
Still, Lockhart has faith in a strong Q1 showing from the economy, adding that consumer spending is up enough since Q4 to say “that overall domestic demand, the lead driver of the economy, is expanding at a healthy enough pace.” [Bloomberg]
