WASHINGTON — Federal Reserve Governor Elizabeth Duke Tuesday said she would like to see higher interest rates, but only in an environment where the economy is also growing strongly.

Speaking at an American Bankers Association gathering, Duke also said in prepared remarks that the economy is indeed strengthening, "particularly the housing market," though she noted that the reason "housing prices are going up probably has to do with a shortage of houses on the market."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.