Fed's Harker (more): Economy can withstand tightening

Patrick Harker, president and CEO of the Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Bank of Philadelphia.

Earlier:

• Fed's Harker also saying he expects 50bp Federal Reserve rate hikes in June and July

More now:

• Inflation is our top priority
• We are going into this with everything except inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term looking good
• There is the risk of negative growth
• I still think we can have a soft landing
• This economy can withstand a measured, methodical tightening of financial conditions
• I am less worried about a deep recession, not forecasting it

Harker says he is not forecasting a deep recession. I wonder why he qualified 'recession' with 'deep'? Uh-oh.

More again:

• We have got to grind demand down
• we don't want to overdo it, but we have to act
• long-term inflation expectations are not unanchored
• lowering demand will have an impact on the labour market
• but if we bring down the number of jobs per worker from 2 to 1, from 1.5 to 1, that's not necessarily bad
• the labour market will soften some, but the goal is not to let it become recessionary

The overconfidence expressed by these officials is something to behold. Fed officials have just come off a MASSIVE ****-UP over transitory inflation, which delayed lift off and is thus doing more damage than it otherwise might. And yet, now they are gobbing off about fine-tuning managing the economy ahead. Bring jobs per worker down ... let them eat cake?