Harker on today's inflation data
Inflation is moving towards target but not accelerating past it
Latest data is good news
Fed would be comfortable with 2.5% PCE inflation
Gains in services inflation is something to watch
Yet to see new tariffs hit labor market
Backing 3 rates hikes this year for now (two are already done)
Harker, on net, is a bit hawkish here but he's a long way from something more hawkish than gradual hikes.
The next big question is whether the Fed raises one more time this year or twice. If you read between the lines lately, there is almost unanimous support for one more hike so that's probably coming in September but it's murky beyond that.
