Federal Reserve Bank of Philadelphia President Patrick Harker said that he could see two to three rate hikes in 2016 and that prices will return towards the central bank’s inflation target over the medium term
“Although I cannot give you a definitive path for how policy will evolve, I can easily see the possibility of two or three rate hikes over the remainder of the year,” Harker said, according to remarks prepared for delivery in Philadelphia on Monday.
Harker emphasized that the U.S. has continued to grow in spite of global headwinds and he called the labor market “extraordinarily dynamic.” His remarks follow several other speeches by Fed official emphasizing the possibility of an interest rate increase at their June 14-15 policy meeting in Washington.
“If the economy follows the path I expect it to follow, monetary policy will be overly accommodative by historical standards,” Harker said. “That will set in motion the possibility of another risk, which is accelerating inflation and the need for aggressive policy actions.”
Bloomberg
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