Normalisation of interest rates will look different this time around, Fed 's Lockhart says

Speaking in the afternoon, the president of the Federal Reserve bank of Atlanta, Dennis Lockhart, said the normalisation of interest rates in the current cycle "might look somewhat different than one's sense of normal based on historic episodes of rising rates."

Nonetheless, he said he was comfortable with raising interest rates "soon", adding that the US economy was on a reasonably solid trajectory.

Speaking at the DeKalb Chamber of Commerce in Atlanta, Lockhart said some important aspects of the economic picture were weaker than a year ago, "energy being a prime example".

As well, inflation had been running below the FOMC's longer-run target for a while, but he expected the gap to close gradually.

Still, Lockhart believes the national economy is on a reasonably solid trajectory. On balance, the data have been encouraging and affirm the economy is growing at a moderate pace.

Lockhart is comfortable moving the federal funds rate off zero soon, conditioned on no marked deterioration in economic conditions.

Policy rate rises would be dictated by the evolution of the economy and the balance of risks, he said.

"There won't be a predetermined path, and policy decisions will continue to be data dependent."