The Fed: Fed’s Harker: One interest-rate hike in 2019 and another in 2020 will be appropriate

By

Senior economics reporter

Philadelphia Fed President Patrick Harker won’t vote on interest-rate decisions until next year.

Philadelphia Federal Reserve President Patrick Harker said Wednesday his outlook for the economy suggests the central bank can continue to inch interest rates higher this year and next.

“My own view is that one rate hike for 2019 and one for 2020 are appropriate,” Harker said in a speech to the Jewish Business Network luncheon.

The Philadelphia Fed president said he expects gross domestic product to grow “a bit above” a 2% annual rate this year, and then slow slightly to 2% into 2020. This year’s January-March quarter will be very slow, with growth closer to 1.5% rate, and then growth will pick up in following quarters, he said.

Harker will be a voter on the Fed’s interest-rate committee next year.

Harker said he would be watching inflation closely but, at the moment, said he was not troubled by what he was seeing.

Core inflation “is not on an accelerated path; if anything, it’s edging slightly downward,” he said.

“With a temperate climate for inflation, continued strength in the labor market, very slight downside risks, solid, but moderate, growth projections for the next couple of years and, of course, a climate of uncertainty, I continue to be in wait-and-see mode,” he said.

“Or to use the word of the moment, I see ‘patience’ as a virtue,” Harker added.

He stressed his projections are not “written in ink.”

“If we had a perfectly functioning crystal ball, those predictions would be infallible — and I’d be playing the lottery a lot more,” Harker said.

Filed in: Top News Tags: 

You might like:

Outside the Box: Sorry Bernie, stock buybacks aren’t to blame for America’s rising income inequality Outside the Box: Sorry Bernie, stock buybacks aren’t to blame for America’s rising income inequality
The Fed: Fed gets earful from Fidelity executive for roiling global financial markets The Fed: Fed gets earful from Fidelity executive for roiling global financial markets
The Moneyist: My husband asked me to file a joint tax return without telling me he owes back taxes The Moneyist: My husband asked me to file a joint tax return without telling me he owes back taxes
Personal Finance Daily: The $1 tip is dead and how married couples should file their taxes Personal Finance Daily: The $1 tip is dead and how married couples should file their taxes
Cryptos: Bitcoin on track for its best week in two months Cryptos: Bitcoin on track for its best week in two months
Capitol Report: State election officials recount their surprise and alarm at 2016 Russian hacking Capitol Report: State election officials recount their surprise and alarm at 2016 Russian hacking
Capitol Report: Why the $15.4 billion Kraft Heinz brand write-down was unusual Capitol Report: Why the $15.4 billion Kraft Heinz brand write-down was unusual
Market Snapshot: Dow logs longest weekly win streak since 1995 on optimism over trade talks Market Snapshot: Dow logs longest weekly win streak since 1995 on optimism over trade talks

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.