WASHINGTON (MarketWatch) – Inflation is likely to move back to the U.S. central bank’s 2% annual target in the “near-term,” said Richmond Fed President Jeffrey Lacker, on Thursday. “After the price of oil bottoms out, I would expect to see headline inflation move significantly higher,” Lacker said in a speech to the Chamber of Commerce in Raleigh, N.C. Most Fed officials, including Fed Chairwoman Janet Yellen have been more cautious, saying that inflation will move higher over a more loosely-defined “medium term.” Lacker is a hawk on the Fed’s interest rate committee, having dissented at the Fed’s September and October meetings in favor of an increase in interest rates. He is not a voting member of the Fed policy committee this year.
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