Philadelphia Fed President Patrick Harker is crossing the news wires saying that he is open to four rate hikes in 2018 if inflation accelerates, as reported by Reuters.
- U.S. Inflation moving toward target, not accelerating past it; latest data is good news.
- Would be comfortable with 2.5 pct preferred inflation measure.
- Fed would need to act with more rate hikes if inflation ‘accelerates’ past 2 pct target.
- Not yet seeing U.S. Labor market hit from new trade tariffs.
- Backs three rate hikes in 2018 for now; Fed should avoid inverting yield curve unnecessarily.
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