Richmond Fed's Lacker calls for raising rates by end of year

The exact sequencing of that is something we’re hashing out and trying to think through," he said.

At some point the Fed will "withdraw monetary stimulus by not reininvesting mortgage-backed security proceeds and then going further and beginning to sell assets" and raising interest rates, Lacker said.

These actions are warranted this year because of concerns about inflation and a need to "normalize interest rates" as the economy improves.

Lackeer said his greater concern is rising inflation, and controlling it in the next nine months "will be critical for us."

Lacker's comments echoed those by another inflation hawk, Minneapolis Fed President Narayana Kocherlakota, who told the Wall Street Journal Thursday that the Fed could raise benchmark borrowing costs, which are now close to zero, by three-quarters of a percentage point by the end of the year,

Charles Plosser recommended a 2.5% increase in one year's time.

So rates will increase and will further decimate housing prices. Expect the double dip in housing to deepen.

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