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Fed's Harker: soft landing possible, not forecasting recession

Published 05/18/2022, 04:35 PM
Updated 05/18/2022, 04:40 PM
© Reuters. FILE PHOTO: A worker weighs meat at a butcher shop at Reading Terminal Market after the inflation rate hit a 40-year high in January, in Philadelphia, Pennsylvania, U.S., February 19, 2022. REUTERS/Hannah Beier

(Reuters) - Philadelphia Federal Reserve Bank President Patrick Harker on Wednesday said he believes the central bank can bring inflation down without sending the economy into a recession, in part because the labor market is currently strong.

"We may have a few quarters of negative growth, but again, that's not what I'm estimating, what I'm forecasting right now," Harker said in a virtual event with the Mid-Size Bank Coalition of America, adding the economy can withstand a "measured" and "methodical" tightening of financial conditions that would bring down demand. "We don't want to overdo it, but we have to act."

Latest comments

you're going to create a depression by your actions. You Fed members need to get your own daily talk shows. You never shut up..... Who are you working for?
Are recessions determined by the labor market or by gdp?
"A recession is a macroeconomic term that refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by GDP in conjunction with monthly indicators such as a rise in unemployment. However, the National Bureau of Economic Research (NBER), which officially declares recessions, says the two consecutive quarters of decline in real GDP are not how it is defined anymore. The NBER defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales", 'What is a Recession', Investopedia, March 25, 2022
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