Fed's Lacker Says Labor Market has Tightened 'Considerably'

Richmond Federal Reserve President Jeffrey Lacker on Friday said he favored raising interest rates at the Fed's policy meeting earlier this week because steady growth in the economy has helped labor markets to tighten "considerably."

Lacker, who dissented in the Fed's decision announced on Wednesday to keep rates steady, said in a statement that rates should be higher because of "the steady growth in output and household spending that we have been observing - and expect to continue."

(Reporting by Jason Lange; Editing by Chizu Nomiyama)