The Federal Reserve could hike interest rates as early as next month, Atlanta Federal Reserve President Dennis Lockhart said Monday.
The Federal Open Market Committee's "patient approach" in keeping its interest rate target unchanged last week made sense, he said in prepared remarks for the Rotary Club of Savannah. The FOMC next meets on April 26 and 27.
Lockhart, who does not vote on the committee, said he expects continued job market improvement this year, adding he is optimistic the Fed's 2% medium-term inflation target is within reach.
Also on Monday, Richmond Fed President Jeffrey Lacker took a similar tone on inflation, saying consumer prices will likely pick up steam in coming years and move toward the Fed's target.
Inflation has been unusually sluggish since the 2007-2009 recession.
The Fed has kept interest rates low in part to foster faster price gains and said last week it was likely to raise interest rates more slowly than policymakers had expected in December.
The U.S. central bank noted in its Wednesday policy statement that financial market-based measures of expected inflation were low.
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