Federal Reserve Bank of Philadelphia President Patrick Harker:
- ‘some additional tightening’ needed to deal with high inflation
- Once rate hikes end, the Fed will need to hold steady for a while
- Expects to see tighter credit conditions on bank stress
- US banks are strong and resilient
- Inflation pressures easing slowly
- Economy has been strong in face of Fed rate hikes
- Expects GDP this year to come in below 1%
- Expects inflation to fall to 3%-3.5% this year
- Household balance sheets are very strong
- Expects to hit 2% inflation target in 2025
- Projects current 3.5% unemployment rate to rise to 4.4% this year
Higher for longer is pretty much a consistent Fed message right now. Nothing really to surprise from H. here.
