February 22, 2017

Jeff Lacker retiring in October 2017


With his retirement ahead in October, Federal Reserve Bank of Richmond President Jeffrey Lacker wants to cement his reputation as a hawk on the Fed even though he doesn't vote in his last year. "With unemployment at or below levels corresponding to maximum sustainable employment and with inflation very close to our announced target of 2%, significantly higher rates are warranted," he stated. The underline is mine. As to when to hike next, he recommends "sooner rather than later in order to reduce the risks associated with having to raise rates more rapidly later on."

Non-voting Dallas Fed member Robert Kaplan also said something similar late yesterday on the timing.

As both don't vote, it really doesn't matter what they think, especially Lacker, because he has been a longtime hawk anyway. Chairwoman Janet Yellen, Vice Chairman Stanley Fischer and the New York Fed's William Dudley rule the Fed roost.

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