Fed's Harker: Expects three rate hikes in 2022, could be persuaded on fourth

Joel Frank Independent Analyst

Federal Reserve Bank of Philadelphia Patrick Harker on Thursday said that he has penciled in three rate hikes in 2022, but could be persuaded on a fourth. Harker continued that the Fed needs to finish its QE taper, then raise interest rates, then start to reduce the size of its balance sheet, which could begin in late 2022 or early 2023. Harker said he sees the interest rates as the Fed's primary monetary tool and added that the composition of the balance sheet is an active debate, with him preferring one that is slightly shorter in duration when it comes to treasuries, though he is open minded.

Market Reaction

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Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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