Patrick Harker said his support is conditioned on a potential acceleration of inflation
The president of the Federal Reserve Bank of Philadelphia said he could possibly support three more rate hikes this year in case inflation accelerates, according to a report by Reuters.
Patrick Harker said that he currently sees two additional rate increases in 2018. However, following a policy tightening in March, he said he may support a third hike due to a potential acceleration of inflation. Harker is a centrist at the Federal Reserve, according to the report.
The rate-setting Federal Open Markets Committee (FOMC) in March raised the federal funds rate a quarter point, from 1.5% to 1.75%, saying that the move was justified by encouraging economic indicators including strong job gains and low unemployment.
“I do think it is prudent to continue to move away from the zero lower bound when we can,” Harker said. He also said he thinks it is appropriate to continue raising rates judiciously given that inflation appears to be moving toward 2% and that there is not much slack in the labor markets.
Harker, who in February expected only two rate increases in 2018, said a move by the committee could happen as early as June.
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