Economics
Fed’s Harker Is ‘Open’ to Faster Rates With Half-Point on Table
- Philadelphia Fed chief sees asset holdings being reduced soon
- Says he’s worried inflation expectations could become unmoored
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Philadelphia Federal Reserve Bank President Patrick Harker expects a series of “deliberate, methodical” increases in the benchmark federal funds rate this year, but said he is open to a half-point move in May if near-term data shows more inflation.
“The bottom line is that generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I -- and my colleagues on the FOMC -- are comfortable with,” Harker said Tuesday, referring to the policy-setting Federal Open Market Committee. “I’m also worried that inflation expectations could become unmoored,” he told an event hosted by the Center for Financial Stability in New York.