Philadelphia Feds Patrick Harker speaking at a virtual event hosted by CFA society of Philadelphia.
- increase covert 19 vaccinations, falling US case rates and fiscal stimulus should stoke economic growth in 2021
- US GDP could grow by 7% before moderating to 3% growth in 2022
- Hesitancy of some people to get vaccinated possibility of new coronavirus variance are downside risks
- Extremely disappointing April jobs report most likely an outlier
- Labor force returning to pre-pandemic trend sometime next summer
- Searth of childcare, concerns about virus and inconsistent recovery or slowing job growth
- Is some upside risk to increase inflation, and federal monitor closely
- Forecasts 2.3% headline inflation for 2021 with core at 2%
Back in April, Harker saw GDP growth at 5% to 6%. On inflation he said that over the longer term, the Fed wants inflation to run above its 2% target to make up for long periods of falling short of the goal. He added, "We're not seeing inflation running out of control," Harker said. "If it does, we'll act accordingly."
Harker is not a voting member until 2023.
