The Fed will hold meetings in September, November and December.
One reason that makes a rate hike appealing is that the U.S. economy is strengthening, New York Federal Reserve President William Dudley told FOX Business.
“We are edging closer towards the point in time when it will be appropriate to raise rates further,” said Dudley during an exclusive interview with Peter Barnes on the FOX Business Network. When asked whether a September rate hike was on the table Dudley said, “Yeah, I think it is possible.”
Dudley highlighted the improving trends he is seeing in the economy including a “tightening” job market. U.S. employers added 255,000 jobs in July, a major improvement following May’s data, which showed just 11,000 new jobs were created. He also noted inflation is moving closer to where the Fed wants it to be: [We] “seem to be on trajectory for 2 percent inflation.”
Dudley’s comments were similar to those of Atlanta Fed President Dennis Lockhart on Tuesday, CNN Money reports.
“If my confidence in the economy proves to be justified, I think at least one increase of the policy rate could be appropriate later this year,” Lockhart said in a speech.
The report also says that minutes from the Fed’s July meeting show that some Fed leaders had pushed for a rate hike during that meeting.