More from Fed's Harker
- There will be price hikes in the short run because of supply and production issues
- He is less worried if prices spike and then come back down.
- His forecast is that wages will level off as more people get back to work.
- Fed knows how to deal with inflation being above where they want it to be.
- He doesn't see signs that inflation is running out of control.
- In the event that inflation goes out of control, the Fed knows how to respond.
- He has a high hurdle before he would think about taking the Fed funds rate negative.
- He is comfortable letting this play out for now and doesn't think it's time to act yet.
- There is no timeline on when the US could launch a central bank digital currency and no decision has been made
- Today's housing market is very different from the great recession.
- That time frame for tapering talks have not been decided
- His view is that one of the purposes of asset purchases is to help smooth market functioning. Fed is pretty much there
- Fed has to be careful with communication of asset purchases to avoid a taper tantrum
- Fed needs to discuss when the appropriate time to adjust asset purchases is
Harker is a 2023 voter
