Investing.com – Atlanta Fed president Dennis Lockhart insisted on Tuesday that a rate hike could happen in June and that he still felt that two increases this year were on the table.
While Fed fund futures only priced in a 13% probability that the Fed would tighten at their next meeting in June, Lockhart indicated to reporters in Florida that markets should be considering a larger chance because the meeting was “live”.
"Two rate hikes are certainly possible. We have enough meetings remaining but it depends entirely on how the economy evolves," he said according to a Reuters report.
However, Lockhart did admit that there may not be enough data on growth on the U.S. economy or inflation by the two-day meeting beginning on June 14 and also remarked that the U.K.’s referendum on its membership in the European Union set for June 23 was a source of uncertainty.
Lockhart was also scheduled to give a speech on the economic outlook and monetary policy after the U.S. market close at 23:00GMT, or 19:00ET.