Fed rate hike makes sense, says US cen­tral banker

Hindustan Times (Patna) - Live - - Business - Reuters let­ters@hin­dus­tan­times.com

Now that the United States is clos­ing in on full em­ploy­ment and in­fla­tion is likely to rise to tar­get lev­els, the “next step” should be to start grad­u­ally in­creas­ing rates, a top US cen­tral banker said on Satur­day.

“I do think it makes sense to grad­u­ally re­move the pol­icy of ac­com­mo­da­tion that helped get the econ­omy to where we are,” San Fran­cisco Fed­eral Re­serve Bank pres­i­dent John Wil­liams said. The com­ments sug­gest that Wil­liams is lean­ing to­ward sup­port of a De­cem­ber rate hike, how­ever he said that he expects “a lot of data” be­tween now and then. “I am go­ing to wait and see on that,” he said.

The Fed last month said it would con­sider a rate in­crease at its De­cem­ber 15-16 meet­ing, the last of the year. The an­nounce­ment prompted FPIs to take out `4,300 crore from the cap­i­tal markes last week.

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