The Federal Reserve could hike interest rates as early as next month, Atlanta Federal Reserve President Dennis Lockhart said Monday.
The Federal Open Market Committee's "patient approach" in keeping its interest rate target unchanged last week made sense, he said in prepared remarks for the Rotary Club of Savannah. The FOMC next meets on April 26 and 27.
Lockhart, who does not vote on the committee, said he expects continued job market improvement this year. He said he is optimistic the Fed's 2 percent inflation target is possible in the medium-term.
Earlier on Monday, Richmond Fed President Jeffrey Lacker took a similar tone on inflation, saying it will likely accelerate in coming years and move toward the Fed's target.
San Francisco Fed President John Williams said he would support a rate hike in April or June if the economic data continue to perform as he expects.
In an interview with Market News International, Williams said the U.S. economy is “looking great” and the Fed would be raising rates at a faster pace if it weren’t for global factors.
“All else equal, assuming everything else is basically the same and the data flow continues the way I hope and expect, then April or June would definitely be potential times to have an increase in interest rates,” he said.
Williams is not a voting member of the Fed policy committee this year. He was a strong advocate of the Fed’s first rate hike in December.
US existing home sales dropped sharply in February - Wells Fargo
Analysts from Wells Fargo, explained that the February decline in new home sales pushed the number to the lowest level since November.
“Sales of previously owned homes fell 7.1 percent in February, which was well below consensus. Exceptionally lean inventories have kept prices relatively firm, with the median price up 4.4 percent over the past year.”
“Existing home sales fell 7.1 percent in February to a 5.08 million-unit rate, marking the lowest level since November. The closely-watched single-family component dropped 7.2 percent following two consecutive monthly gains. Single-family sales are now up 2 percent year over year.”
“Total housing inventory rose 3.3 percent in February to 1.88 million homes available for sale; however, the level remains low on a historical basis. The low level of inventory will continue to hold back overall sales and support prices. The median price of a single-family home is up 4.3 percent over the past year.”
Oil prices rose about 1 percent on Monday after data showed crude inventories at the Cushing, Oklahoma delivery hub for U.S. futures fell for the first time since January, and ahead of the expiration of the U.S. front-month contract.
Oil's upside, however, was limited by concerns that U.S. energy companies could ramp up drilling again after a two-month long recovery in crude prices, analysts said.
Brent crude futures for May delivery LCOK6, the front-month, settled up 34 cents, or 0.8 percent, at $41.54 (28.8 pounds) a barrel. Brent has risen 53 percent from 12-year lows of $27.10 hit on Jan. 20.
U.S. crude's futures for April CLJ6 gained 47 cents, or 1.2 percent, to settle at $39.91, expiring as the front-month. The more-active May contract CLK6, which would be front-month from Tuesday, finished up 38 cents at $41.52.
Reference: CNBC, MarketWatch, FXStreet, Reuters
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