Patrick Harker is President of the Federal Reserve Bank of Philadelphia. he spoke earlier: Fed's Harker repeats he sees two more rate hikes this year as appropriate

Q&A now:

  • Federal Reserve needs to get in the background
  • Fed will shrink the balance sheet in a predictable transparent way
  • Some smoothing of balance sheet reinvestment may make sense
  • Fed will explain the b/s exit plan and avoid market surprise
  • Not factoring fiscal policy stimulus into his forecast ... its clear that republicans are not on the same page on US tax policy plan
  • Favours 3 hikes in 2018

(earlier he said again he favoured 3 in 2017)

  • Fed will adjust the pace of hikes if needed
  • Starting to see some wage pressure, US labor market is extremely tight
  • Starting to see some signs of real global growth

more to come (yeah, the Fed not moving into the background for today at least, right Mr. H?) ... and that's it for now - Q&A finished ....

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Also, in his speech earlier:

  • He is not concerned about weak Q1 GDp growth
  • Sees unemployment dropping to 4.2% by end of 2018
  • On inflation - said that a month or two in the wrong direction isn't enough to make me lose faith, expects it to rise to the 2% annual rate target sometime late in 2017 or early in 2018