May 16, 2016 / 12:56 PM / 2 years ago

Fed's Lacker says June hike should be on the agenda

WASHINGTON (Reuters) - The Federal Reserve should consider raising rates at its June meeting, Richmond Fed President Jeffrey Lacker told the Washington Post in an interview published on Monday, saying inflation was moving toward two percent and labor markets had tightened.

Federal Reserve Bank of Richmond President Jeffrey Lacker testifies before the House Financial Services Committee hearing on "Examining How the Dodd-Frank Act Could Result in More Taxpayer-Funded Bailouts" on Capitol Hill in Washington June 26, 2013. REUTERS/Yuri Gripas

“I never completely make up my mind before a meeting, but at this point it looks to me as if the case for raising rates looks to be pretty strong in June,” Lacker told the Post.

Financial markets have all but priced out a June move and Lacker, who is not a voting member of the Fed’s policy-making board this year, warned that there were risks with delaying any hike.

“I think markets may be extrapolating from our recent behavior and thinking all we do is delay. We never recover.”

The Fed’s next policy meeting is June 14-15.

Reporting by David Chance; Editing by Andrea Ricci

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