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.”