Fed's Harker sees only two interest-rate hikes in 2018
WASHINGTON (MarketWatch) - Philadelphia Fed President Patrick Harker said Friday he thinks the central bank will only raise interest rates twice this year, one fewer than the central bank's median forecast of three moves. In a speech at the American Economic Association meeting in Philadelphia, Harker said the central bank will be in "monitoring mode" this year. "There is a lot to watch generally, and much of it, in some form or another, is new territory," Harker said. The Philadelphia Fed president said he expects growth a little below 2.5% this year. He forecast that inflation will rise above the Fed's 2% target in 2019. "If soft inflation persists, it may pose a significant problem," he said. Harker is not a voting member of the Fed's interest-rate policy committee this year.
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