Fed Governor: Not “Appropriate” to Raise Rates Now

The likelihood of an interest rate hike by the Federal Reserve grew dimmer today as Fed Governor Daniel Tarullo expressed doubt that such an action would occur.

While noting that there was “no question we've made progress in the labor market” and that the potential for a rate hike was not completely off the table, Tarullo was clear that the likelihood of it happening before the end of the year seemed unlikely.

“I wouldn't expect it would be appropriate to raise rates,” said Tarullo this afternoon in a CNBC interview.

Tarullo cited a “good bit of uncertainty” in the overall global economy, coupled with the potential impact on inflation created by falling energy prices and an overly robust U.S. dollar. He added that wanted to confirm if there was “tangible evidence” of inflation picking up and approaching the Fed's two percent target range before any rate hike could go forward.

Tarullo is a voting member of the Federal Open Market Committee (FOMC), the central bank’s policy-making arm.