Patrick Harker, chairman of the Federal Bank of Philadelphia, gave his support for a statement given by Fed Chairman Jerome Powell last week about inflation. He said he keeps his middle inflation and short-term growth projections unchanged.
“If any part of the opinion would affect my view of the proper path of monetary policy, it would be inflation,” Harker said in remarks prepared for distribution at a monetary and commercial conference in Philadelphia. “However, we are not yet there, and will need more data to convince me, so I continue to see an increase this year, perhaps the most, mostly.”
Powell surprised the markets last week by saying that lower inflation trends could be partly explained by “passing” factors, including fund management fees, clothing prices, and air prices. Remarks have been seen by some investors as being more aggressive to potential inflation risks than expected. Harker said he suspects it is true.
He said it is possible that some of the trade-related factors driving this growth may prove temporary and sluggish in the second quarter and while Harker still sees a strong labor market and described initial data for the first quarter of US economic growth as “a pleasant surprise”./Investing.com