Fed's Harker: We will do what it takes to get inflation under control
|A voter in 2023, Philadelphia Federal Reserve President Patrick Harker on Friday said he believes the US central bank can bring down inflation without triggering a deep recession and hefty unemployment.
"We don't want to do this in a way that squashes the job market right now," Harker told Bloomberg TV from Jackson, Wyoming, where Fed officials have gathered for a conference.
"If there is a recession, it would be shallow," he said.
Key notes
''We need to move methodically toward a clearly restrictive stance.''
''We will do what it takes to get inflation under control.''
''If there is a recession it would be shallow in my view.''
''Restrictive is clearly above 3%, how much more than that we'll have to see.''
''Not in the camp of unemployment needing to rise to 5% to get inflation under control.''
''We cannot let inflation expectations get unanchored, does not think they are now.''
US dollar and stocks update
Meanwhile, US stocks have attempted to turn around but remain pressured in a risk-off environment. An early rally in stocks faltered after Federal Reserve policymakers St. Louis Fed President James Bullard and Chicago Fed President Charles Evan advocated more interest rate hikes even at the risk of slowing economic growth.
Later in the day, Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said in a WSJ Live interview that central bankers are united in their determination to do what needs to be done to bring inflation down, and financial markets understand that. "There's a lot of tightening in the pipeline," Kashkari said.
The benchmark S&P 500 erased gains of up to 1.7% by early afternoon trading to hit lows last seen in late November 2020.
The US dollar, as measured by the DXY index, is back to trading in the 114 area but is currently under pressure below the highs of the day of 114.47.
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