Plosser says rate hike is closer than many think

|By:, SA News Editor

Philly Fed's Charles Plosser, Chicago's Charles Evans and Atlanta's Dennis Lockhart disagreed today on whether the declining U.S. unemployment rate warrants advancing the timing for an interest rate increase.

Plosser said “we are closer than a lot of people might think” to the first rate hike since 2006 and the Fed risks losing credibility by waiting too long to raise rates; in separate speeches, Evans and Lockhart countered that low inflation and labor market slack will allow the Fed to wait until late 2015 or 2016.

Plosser is an FOMC voting member this year; Evans and Lockhart are non-voters.