Fed's Lockhart Says A 'Gradual' Tightening Does Not Imply Rate Hike At Every Meeting

The Federal Reserve raised its benchmark rate for the first time in approximately 10 years during its December meeting. Now that the first rate hike has passed, investors are focusing on when the next rate hike will be announced, and at what frequency will the Fed implement its new policy of tightening.

The Federal Reserve Bank of Atlanta's President Dennis Lockhart answered the important question, noting that the pace of future tightening will be "gradual."

"Moving up gradually means not every meeting, in all likelihood," Lockhart was quoted as saying by Bloomberg. "The rate of rising interest rates will be more like every other meeting."

Lockhart suggested that the public should view the central bank's tightening policy as a "vote of confidence in the economy." He also added that manufacturing could benefit as global conditions improve, especially as growth in China stabilizes and Europe's economy is "picking up."