Fed's Harker: May have to reassess rate path if there's a big fiscal stimulus

Author: Adam Button | Category: Central Banks

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.

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