There is no timetable, so no one can give a truthful answer to when and how fast interest rates will rise, according to Federal Reserve Bank of Richmond President Jeffrey Lacker.
"I suspect some of you are just as avidly interested, if not more so, in when and how rapidly the Fed will raise rates. I hate to disappoint you, but the truth is nobody knows yet," Lacker said Friday in Richmond, according to text released by the Fed. "There is no pre-set timetable for raising rates. The FOMC's actions genuinely will depend on the economic data available at the time. So I cannot tell you when and, more importantly, how rapidly our rate target will rise."
Lacker said the economy is "somewhat brighter" and should grow faster than the 2.25% annual average for the past five years, and GDP could be up 3% this year.
However, with all the progress then setbacks the economy has suffered since the great recession, Lacker warned, "policymakers should strive to look through clearly transitory phenomena to assess the underlying real economic developments that — as long as inflation is anchored — determine the appropriate path for interest rates. And they need to be prepared to respond promptly."
