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Fed's Williams, Lockhart see at least two rate hikes in 2016

Bloomberg Published on Wed, May 18, 2016 / 7:49 AM GMT+8

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NEW YORK (May 18): Two regional Federal Reserve bank presidents said at least two interest-rate increases may be warranted this year because the economy continues to expand and inflation is picking up, pushing back against expectations the central bank will delay action next month.

"Currently my assumption is two, possibly three," Atlanta Fed President Dennis Lockhart said Tuesday in Washington. He was joined at the Politico-hosted event by his San Francisco Fed colleague John Williams, who said "gradual means two to three rate increases this year."

That view contradicts investors who see only a small chance of a move at the next gathering of the policy-setting Federal Open Market Committee on June 14-15. The panel must weigh how quickly to raise rates again after lifting its benchmark for the first time in December to a range of 0.25% to 0.5%.