As the economic recovery gathers steam, a rate increase might be necessary, said three top officials at the Federal Reserve. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said the benchmark interest rate should be lifted to 1% by the end of summer. Dennis Lockhart, head of the Federal Reserve Bank of Atlanta, said monetary-policy tightening should be considered. Richard Fisher, president of the Federal Reserve Bank of Dallas, said "we need to be ready, and we need to be ready to move fairly quickly."
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