There will be inflation overshoot – FOMC’s Harker

Philly Fed Patrick Harker (voter, hawkish) said today that there will be some appropriate inflation overshoot.

He also noted that more details are needed in order to factor in fiscal policy, while he keeps signalling three rate hikes this year although he did not ruled out an extra rate raise. He said the recent rate hike was in line with data.

Harker argued that the Fed is discussing the reduction of the balance sheet.

He said that more people need to be part of the work force and that confidence needs to translate into action.