Fed's Harker: Not seeing signs that inflation is running out of control

Philadelphia Fed President Patrick Harker said on Friday that price hikes are expected in the short run because of supply and production issues, as reported by Reuters.

Additional takeaways

"Less worried if prices spike and then come back down."

"My 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."

"I don'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."

"I have a high hurdle before I would think about taking the Fed funds rate negative."

"I'm comfortable letting this play out for now and don't think it's time to act yet."

Market reaction

These comments don't seem to be having a significant impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was unchanged on the day at 89.93.