Fed’s Harker: Supportive of moving toward a tapering process sooner rather than later
|“I am supportive of moving toward a tapering process sooner rather than later. When exactly that happens, the committee needs to decide. I would hope sometime this year we would be able to start the tapering process,” told Philadelphia Federal Reserve Bank President Patrick Harker in a Nikkei interview, per Reuters.
Asked about whether the Fed will announce any rate hike or tapering during next week’s meeting, Fed’s Harker said, “That has not been decided, and I'd rather not comment on that.”
The policymaker also forecasts late '22 or early 2023 for rate hikes while also saying, “I do have some concern that the risks to higher inflation than we expect are elevated, and so I would like to leave open the option of a rate increase. But again, that depends on the state of the economy.”
Market reaction
The news fails to underpin the US dollar strength as market sentiment remains mildly positive amid a sluggish session.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.