Fed Officials Begin To Sound Hawkish On Interest Rates
Two Fed officials say the US economy needs another rate hike, warning that if the Fed delays too long it risks stoking an asset bubble.
Boston Fed President Eric Rosengren and Kansas City Fed’s Esther George are both voters on the Federal Open Market Committee and spoke at separate events Thursday calling for action from the Fed, Bloomberg reports.
Rosengren, a self-described dove, says rates need to be spiked in order to cool off an overheating commercial real estate market, while George, a hawk, says rates are too low for current economic conditions. The common ground they share hints at a possible consensus on the committee leading up to the June FOMC meeting. [Bloomberg]