Based on his predictions of core personal-consumption expenditure inflation rising slowly this year, and remaining under 2%, a rate hike by the end of the year “would be desirable,” Federal Reserve Bank of Minneapolis president Narayana Kocherlakota said Thursday.

Should PCE core inflation rise to 1.5%, a hike of “around 50 basis points” would be called for, Kocherlakota told a Santa Barbara County Economic Summit, according to prepared text released by the Fed.

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