Fed Governor Fisher is warning Rate hikes could come sooner vs later.
The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.
“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.
Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.
“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”
