- The time for supercharging rate hikes is over
- Fed committed to lowering inflation back to 2%
- Expects Fed to raise rates 'a few more times' this year
- Expects inflation to moderate to 3.5% this year
- Inflation will fall to Fed's target in 2025
- US economy to grow 1% this year, unlikely to suffer recession
- US unemployment rate to tick up to 4.5% this year before ebbing
2025 is a long time to wait to get back to target. Harker is a good barometer for the core of the Fed and the market is pricing in a 92% chance of a 25 bps hike on Feb 1.
