Philadelphia Fed Chief Patrick Harker Doesn’t See Rate Hikes Until Taper Is Complete

Source: Reuters 

Philadelphia Fed President Patrick Harker says any hikes in interest rates will wait until the tapering of bond purchases is complete. SPY is up +0.085%, DXY is down -0.06%.

• Harker still says the Fed is prepared to act in a high inflation environment if need be. He says inflation could moderate over the next year as imbalances of supply and demand weaken.
• Harker expects more people to return to the labor market over time as stimulus programs wear out.
• The Philadelphia Fed chief expects the US economy to expand by around 5.5% this year, before moderating to 4% next year. He sees a growth range of between 2% and 3% in 2023.