Fed's Harker: It might be better to wait for stronger inflation before next hike

Later than advertised but now out

• Might be prudent to wait for stronger inflation before hiking for the second time
• He's taking a conservative approach to policy in the near term
• Expects more meaningful rate hikes in 2nd half of the year
• It may be worth erring on the side of accommodation given the risks of persistently low inflation
• Expects 1.5% CPI in H2 2016 as energy prices stabilise
• Is upbeat on economy despite market risks and expects 2.7% GDP this year
• Market sell off will not overwhelm economic strength but it tilts risks to the downside

Dovish comments from the Philly Fed president speaking in Delaware