Philadelphia Fed Pres. Patrick Harker
- Fed to keep raising rates for a while
- needs to see sustained drop in inflation to change policy outlook
- Fed actively trying to slow economy to curtail fresh inflation
- Fed has made disappointing progress at lower inflation
- Fed funds rate likely well above 4% by year-end
- Future Fed rate actions will be driven by how the data performs
- Expects Fed policy to stay restrictive for a while
- Sometime next year Fed cannot stop hikes, take stock of policy impact
- GDP likely flat this year and rise by 1.5% next year
- Inflation likely to fall around 4% next year at 2.5%
- US unemployment to rise to 4.5% next year. Job market to remain healthy
Comments are somewhat more hawkish compared to recent comments from Fed officials which have hedged against going too far.
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