Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fed's Harker says central bank will 'hold steady' for now

EconomyApr 13, 2021 02:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Federal Reserve building is pictured in Washington, DC

By Jonnelle Marte

(Reuters) - The U.S. economy could grow by around 5% to 6% this year, buoyed by increased vaccinations and strong fiscal aid, but the Federal Reserve is not going to pull back its support yet, Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday.

"For now, Fed policy is going to hold steady," Harker said in remarks prepared for a virtual event organized by the Delaware State Chamber. "While the economic situation is improving, recovery is still in its early stages, and there’s no reason to withdraw support yet."

Policymakers agreed last month to leave interest rates near zero and keep purchasing $120 billion a month in bonds until the economy makes "substantial further progress" toward the Fed's goals for inflation and maximum employment.

A full economic rebound cannot happen until more people are vaccinated and the U.S. reaches herd immunity, he said. But the announcement Tuesday that federal health agencies recommended pausing use of Johnson & Johnson (NYSE:JNJ)'s COVID-19 vaccine after six women developed rare blood clots could make more people hesitant to receive the vaccines and slow down the recovery, Harker said.

Despite concerns among some economists and politicians that inflation could shoot higher as the economy heals, Harker said he is concerned with the opposite - inflation that is too low. Over the longer term, the Fed wants inflation to run above its 2% target to make up for long periods of falling short of the goal, Harker said.

"We're not seeing inflation running out of control," Harker said. "If it does, we'll act accordingly."

Fed's Harker says central bank will 'hold steady' for now
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
ben sc
ben sc Apr 13, 2021 3:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
4T for 5% growth. math doesn't check out.
Gamer Turtle
GamerTurtle Apr 13, 2021 3:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that's how it has been working. print a trillion to create few billions of gdp and call it a growth. lol. it works because credit card is unlimited and repayment is never demanded.
Cal Lowe
Cal Lowe Apr 13, 2021 3:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Feds are talking ****** It is no longer sustainable. Crash is coming
MK MK
MK MK Apr 13, 2021 2:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Those fed fools should be destroyed immidiately for bs they talk
Jim Jones
Jim Jones Apr 13, 2021 2:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
FED propping up their own retirement accounts seems like a conflict of interest.
Ronald Warren
Ronald Warren Apr 13, 2021 2:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Question: The FED has been and will continue to buy 40 billion a month in mortgages. Are they actually holding the deeds and contracts to all that real estate? That's so wrong and probably illegal in so many ways. Monopoly laws??
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email