Patrick Harker is the President of the Federal Reserve Bank of Philadelphia. Speaking in NY:
- 3 hikes in 2017 is appropriate
- Inflation on track despite recent softness
- Fed discussing different balance sheet exit options - aim is for b/s to unwind gradually in the background, b/s exit to be predictable, slow, boring
- Labour market has very little slack left
Those headlines via Bloomberg, from the text of Harker's speech
More ... this from Reuters:
- The Federal Reserve is still discussing options for shrinking its $4.5-trillion bond portfolio and, once that begins, the central bank could "intervene" in the process if necessary, Philadelphia Fed President Patrick Harker said on Tuesday. "If something happens, of course we'll intervene, but we fundamentally want to push the start button and leave it to churn slowly away," Harker said at a Market News International conference. "We'll still discuss the balance sheet in (regular policy) meetings, but if things are good, we'll leave it to gradually unwind in the background."
The full text of the speech is here
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Following speeches we often (usually) get a Q&A. If so I'll get any more comments from mr. H up on a separate post.
