The president of the Atlanta branch of the US Federal Reserve has reiterated his current support for a December lift-off in interest rates.
“Absent information that drastically changes the economic picture and outlook, I feel the case for liftoff is compelling,” Dennis Lockhart said today.
“I think the economy is closing in on full employment.”
“The trend in wage growth has been weak for some time, but it may be picking up.”
Wages are seen as a precursor to higher rates of inflation, which is currently below the Federal Reserve’s two per cent target.
Lockhart has fallen on the hawkish side of the debate in recent months.
Federal Reserve officials are still debating whether to increase interates from record lows at their next meeting, which takes place over the 15 and 16 December.
The central bank’s headline policy rate has been kept in a target range of zero to 0.25 per cent since the end of 2008.