dChan
Anonymous ID: fdffca May 6, 2019, 9:59 a.m. No.6428940   🗄️.is 🔗kun   >>9209 >>9369

Fed's Harker Expects One More Rate Hike in 2019 and Another in 2020 – Update

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Federal Reserve Bank of Philadelphia President Patrick Harker said Monday he is still expecting more central bank interest-rate increases, but acknowledged that view has become somewhat more tentative.

 

"If any component of the outlook were to affect my view on the appropriate path of monetary policy, it would be inflation," Mr. Harker said in a Philadelphia speech.

 

While recent readings give some reason to worry about soft inflation readings, it isn't yet time to say that expectations of rising inflation are wrong, Mr. Harker said. "I therefore continue to see one increase at most this year; possibly one, at most, next," he said.

(of course you would say this just after the FOMC lowered the discount rate last week)

 

Mr. Harker, who isn't currently a voting member of the interest-rate setting Federal Open Market Committee, was making his first public comments since last week's gathering. Then, officials kept short-term rates steady and signaled no rate changes are likely. The Fed also said that while inflation has been falling short of its 2% target, it doesn't expect that weakness to persist.

 

The weakness of inflation has come as the job market has remained strong and growth has been robust. Soft price pressures are leading some to speculate the Fed could have to lower rates despite an otherwise solid economy.

 

In his speech, Mr. Harker agreed with the Fed consensus on inflation.

 

"I suspect some of the recent weakness is transitory," Mr. Harker said. "So I still see it running slightly above our 2% target for the medium term, but that projection is nowhere near written in stone; more like a dry-erase board," he said.

(try going shopping asshole or buying gas-oh rigggght YOU DON'T COUNT THAT)

 

Mr. Harker also told the audience that trade barriers and tariffs are "not a healthy thing for the economy overall" and that the biggest issue many firms now confront is policy uncertainty. He was responding to a question about President Trump threatening to ramp up tariffs on China, and didn't comment directly on that development.

 

In other comments, Mr. Harker said the better-than-expected reading on first quarter growth was a "pleasant surprise" and that he expects to see the economy grow a little over 2% this year. He added that the job market is still showing "remarkable strength" and that what is now a 3.6% jobless rate will tick down to 3.5% before ticking back up again.

 

Mr. Harker also addressed the Fed's balance sheet drawdown and said there were still uncertainties about how the central bank's holdings of government bonds should stack up once the winddown is completed later this year. He said the Fed should proceed cautiously given the unique nature of the situation.

(who in the holy hell are you going to sell these to?-nevermind they are just letting them roll off on the maturity date)

https://www.morningstar.com/news/dow-jones/TDJNDN_201905066218/feds-harker-expects-one-more-rate-hike-in-2019-and-another-in-2020-update.html

 

So they trot this guy out to jaw-bone a rate increase because THEY NEED IT to increase the collapsing yeild curve due to the lowering of the discount rate in the FOMC relesae last week.

this will just fuck eveyone, including the system that relies on the bank's and institution's that serve wall street.

For you newfags the FRB is OWNED by the big 6 bank's and a few other's