Further comments by Harker
- Market has priced in less optimism than the FOMC
- Sees neutral rate as being one or two moves away
- Says inflation is not running out of control
- Would want to see inflation rise and stay above 2% for a bit before hiking this year
- Would also need to see strong labour market
- Doesn't see circumstances for a rate hike in the short-term
Basically summarising the whole situation after the FOMC meeting last week. In case you need a reminder, the Fed's latest dot plots projection shows no rate hikes for 2019 and just one rate hike for 2020.
Also, besides inflation, the Fed is still rather cautious about the US and global economy so there's that to consider too when it comes to factoring in future rate hikes.
