Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Fed's Harker now sees just up to two rate hikes this year

Published 07/13/2016, 10:00 PM
Updated 07/13/2016, 10:00 PM
© Reuters. The  Federal Reserve building in Washington

© Reuters. The Federal Reserve building in Washington

By Jonathan Spicer

PHILADELPHIA (Reuters) - The Federal Reserve could hike interest rates up to two times before year end, a top U.S. central banker said on Wednesday, slightly downgrading his expectations for monetary tightening even though he said the economy is on "fairly firm footing."

Philadelphia Fed President Patrick Harker, when he last spoke publicly in late May, predicted two to three rate increases this year. Since then U.S. jobs growth plunged one month and then shot back up the next, while Britons voted to leave the European Union.

Harker, who has been at the Fed for a year, downplayed any effects of the so-called Brexit referendum. He said first-quarter U.S. economic weakness was largely due to seasonal adjustments, and predicted both that inflation would hit a 2 percent target in 2017 and that the Fed would raise rates toward 3 percent by the end of 2018.

"Considering the economic projections, I anticipate that it may be appropriate for up to two additional rate hikes this year," said Harker, who does not vote on policy this year.

"Brexit is low on my list of risks, and I do not anticipate more than a transitory couple of 10ths of a percentage point slowdown in growth," he added in prepared remarks.

The Fed raised interest rates from near zero in December, its first policy tightening in nearly a decade. But it has kept its key rate steady at 0.25-0.5 percent since then as global markets and economic data have proven volatile.

© Reuters. The  Federal Reserve building in Washington

Latest comments

"Just 2" and market stil expect NONE.. .
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.