Richmond Fed President Jeffrey Lacker on Friday issued a statement explaining why, for the second decision in a row, he dissented from his Federal Reserve colleagues in calling for a rate hike. "My reasoning was based on my belief that with the steady growth in output and household spending that we have been observing - and expect to continue - the real (inflation adjusted) rate of interest should be higher than its current level of less than negative 1%," he said. "My assessment was also supported by labor markets that had tightened considerably and my confidence that inflation will return to our 2% objective after the temporary effects of low energy and import prices have passed." He added that the data received since the September meeting have strengthened his confidence that global economic developments, namely in China, were not likely to impact the U.S. medium-term outlook.
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