Based on his predictions of core PCE inflation rising slowly this year, and remaining under 2%, a “modest” rate hike by the end of the year “would be desirable,” Federal Reserve Bank of Minneapolis president Narayana Kocherlakota repeated Wednesday.

If personal consumption expenditure core inflation were to rise to 1.5%, a hike of 50 basis points would be called for, Kocherlakota told the Forecasters’ Club of New York, according to prepared text released by the Fed, echoing remarks he made last week.

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