The Fed: Fed’s Lacker sees more interest-rate hikes if Republican Congress enacts stimulus

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    Senior economics reporter
    Bloomberg


    Richmond Fed President Jeffrey Lacker

    If the next Congress passes a stimulus program, the Federal Reserve should respond with more interest-rate hikes, said Richmond Fed President Jeffrey Lacker on Thursday.

    “If a fiscal stimulus initiative were enacted, I think we would see a steeper path” for interest rates, Lacker said in a speech in Richmond, according to Reuters.

    Lacker, a strong hawk, won’t be a voting member of the Fed’s policy committee until 2018. A so-called hawk is in favor of lifting interest rates sooner than later

    The Richmond Fed president said the case for a rate hike in December is strong even with “the events of this week.”

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