Lockhart hints at a quick pace of hikes that the market

The market is looking for about 3 rate hikes in the year ahead while the Fed dots indicate four hikes. The FOMC has four meetings next year and if they were raise rates every second one that would mean March, June, Sept and Dec hikes.

Other comments from Lockhart in an interview with an Atlanta radio station:

  • Dec rate hike is nothing to be alarmed about
  • Fed will be gradual but data-dependent
  • Inflation is running very low right now
  • Economy growing at moderate pace, a bit above 2% y/y
  • Oil prices and dollar influence on inflation should pass
  • Fed hike could very well influence USD value
  • US is closer to full employment but not there yet
  • China's growth stabilized in 6-6.5% range
  • Momentum in US economy is solid