Fed's Plosser: Rate hike closer than a lot of people think

FXStreet (Łódź) - Speaking on Bloomberg TV on Friday, Philadelphia Fed President Charles Plosser said that the central bank was getting closer to reaching its goals and suggested that rates should be raised before the goals were achieved.

Waiting too long with the hike could be disruptive, he stressed, adding that policy should respond to a better economic outlook. Inflation is rising toward the Fed's target and expectations are stable.

The Fed policymaker also said that wage growth was lagging the inflation indicator and that wages respond to higher rates of inflation.

"The Fed is closer to hiking rates than a lot of people think," Plosser suggested.