Fed's Harker: May have to reassess rate path if there's a big fiscal stimulus
Harker answering reporter questions
- Fed should consider shrinking balance sheet when Fed funds above 1%
- Starting to see increasing wage pressure
- Right now there's no need to rush rate increases but must avoid significant overshoot
Harker is a hawk and a voter but he's emphasizing patience. It's going to be tough for the Fed to be patient and still hike three times in 2017, like he forecasts.