The Federal Reserve should raise rates before it becomes obvious that a rate hike is needed, Fed governor Kevin Warsh said Friday.

“I would hazard the view that prudent risk management suggests that policy will likely need to begin normalization before it is obvious that it is necessary, possibly with greater force than is customary, and taking proper account of the policies being instituted by other authorities,” Warsh told bankers in Chicago, according to a prepared text of the speech released by the Fed.

“In my view, if policymakers insist on waiting until the level of real activity has plainly and substantially returned to normal — and the economy has returned to self-sustaining trend growth — they will almost certainly have waited too long.”

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