Fed's Lockhart, Bullard shift rate-hike focus to July

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Reuters WASHINGTON
Last Updated : Jun 06 2016 | 10:07 PM IST

WASHINGTON (Reuters) - Two more top U.S. central bankers on Monday joined a chorus of policymakers all but dismissing the possibility of an interest-rate hike next week, but professing their continued belief a rate hike soon after will be possible.

Federal Reserve Bank of Atlanta President Dennis Lockhart believes the U.S. central bank should wait until July before considering whether to hike rates, citing a weak May jobs report and potential disruptions from Britain's June 23 vote on whether to leave the European Union.

Lockhart, a non-voting member, told Bloomberg Television that he did not "see a lot of cost to being patient to the July meeting at least".

Lockhart said he believed there could be two rate hikes between now and the end of 2016.

St. Louis Fed President James Bullard, who is a voting member this year, said the dismal jobs report reduces the chance of a rate hike this month, and called for the Fed to have Fed Chair Janet Yellen hold press conferences after every meeting to make markets more aware that a rate hike could take place.

"It's possible we could move there, and that would kind of placate my concerns over this issue," Bullard told the Wall Street Journal.

Several other prominent Fed officials have also flagged a June rate hike as unlikely, and markets are betting heavily against the possibility.

Yellen speaks later today and is expected to try to keep July as a live option for a hike.

(Reporting by David Chance in Washington; Additional reporting by Ann Saphir in San Francisco; Editing by James Dalgleish)

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First Published: Jun 06 2016 | 9:52 PM IST

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