Economic growth has been strong enough that the Federal Reserve could raise interest rates as soon as its next monetary policy meeting in April, Federal Reserve Bank of Atlanta President Dennis Lockhart said Monday.
Speaking in Savannah, Ga., Lockhart cited “sufficient momentum” in recent economic data to “justify a further step at one of the coming meetings, possibly as early as the meeting scheduled for the end of April.”
The central bank raised interest rates in December for the first time since 2008, but has held off on further increases because of stock market volatility and signs of economic distress in China and elsewhere overseas.
Lockhart’s comments suggest that he is confident enough in recent signs of U.S. economic growth to rule out the scenario in which the Fed has to reverse course.
“I would argue that the real economy — the Main Street economy — remains substantially on the path” to moderate growth seen by Fed members in December, Lockhart said, according to prepared remarks.
While Lockhart is not a voting member of the Fed’s monetary policy committee this year, he is a self-styled centrist among Fed officials and often is in line with Chairwoman Janet Yellen.
In her press conference following last week’s monetary policy meeting, Yellen said “April remains a live meeting” in terms of a rate increase.
The meeting is scheduled for April 26-27.
