- Richmond Federal Reserve President Thomas Barkin says when the economy is strong, unemployment is low, and inflation is at the central bank's target, it's difficult to justify keeping interest rates low.
- Higher rates would provide policy makers with one tool to combat a future economic economic downturn, he said. Barkin is a member of the Federal Open Market Committee, which sets the fed funds rate.
- "Stronger growth would allow the FOMC to raise rates higher without constraining the economy, giving us more ammunition when we need it," Barkin said in prepared remarks at Hotel Roanoke in Roanoke, VA, Wednesday.
- The Fed has raised rates twice this year so far, the last time on June 13. On Aug. 1, it maintained the rate at 1.75%-2.0%, and has signaled it expects two more hikes by the end of this year.
- Previously: Fed maintains target range of federal funds rate (Aug. 1)
- Previously: Trump `not thrilled' with Fed's path to rising interest rates: CNBC (July 19)
- Bond ETFs: TLT, TBT, TMV, TBF, EDV, TMF, TTT, ZROZ, VGLT, TLH, UBT, SPTL, DLBS, VUSTX, TYBS, DLBL, OPER
- U.S. dollar ETFs: UUP, UDN, USDU
- Now read: The Dollar Index Is Trying So Hard To Break To The Upside
Original article