Fed’s Harker: Economy close to achieving inflation goal for rate hikes

The President of Fed’s Philadelphia, Patrick Harker, said the economy “may be close to meeting the inflation mandate set for raising rates”, in an interview with Reuters.

Harker mentioned that if the economy continues to improve, it could reach maximum employment and the inflation mandate as soon as 2023. He wants to start tapering the bond purchase program sooner rather than later.

The Fed will not be removing stimulus anytime soon, Harker explained. According to him, winding down QE soon could give the Fed more options in 2022 to curb inflation above the target.