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WASHINGTON, Sept 9 Federal Reserve Governor
Daniel Tarullo on Friday repeated his assertion that he wants to
see more evidence of a sustained uptick in inflation before
raising interest rates, dampening expectations of a rate hike
by the U.S. central bank next week.
"As inflation in my view shows that it's picking up in a
sustainable way to be a target rather than being below where
it's been for most of the last five or six years, then we'd
raise rates," Tarullo said in a television interview with CNBC.
"What is optimal right now is to look to see actual evidence
that the inflation rate will continue to go up and be sustained
at around the target because we've had so many false up and
downs in the past," Tarullo added.
However, he did not foreclose the possibility of a rate
increase this year.
Tarullo, a permanent voter on the Fed's rate-setting
committee, has previously cautioned against another rate hike
until inflation reaches the Fed's 2 percent target rate.
Another permanent voter, Fed Governor Lael Brainard, will
speak in Chicago on Monday. She has also repeatedly advocated
against raising rates too quickly amid sluggish inflation and
growth in the U.S. and globally.
The Fed holds its next policy meeting Sept. 20-21.
(Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)