Three rate hikes appear to remain appropriate for this year, Federal Reserve Bank of Philadelphia President and CEO Patrick T. Harker repeated Monday, noting they can be spread out.
"I'm on record as saying that I view three rate hikes as appropriate in 2017, assuming things stay on track, and I still think that's the right call," Harker said in a speech at the University of Pennsylvania, according to prepared text released by the Fed. "I continue to believe they should be gradual, both in pace and increments. I don't want to get behind the curve, but I don't think we need to rush, either. I consider every meeting to be live and that gives us plenty of opportunity over the course of the rest of the year."
Noting monetary policy is data-dependent, he added, "I'll be looking at the information as it comes in, but right now that's the trajectory I see for policy."
Based on data the recent Fed rate hike "made sense," based on steady gains in labor and increased wage growth. Also inflation appears to be moving toward the Fed's 2% inflation target. "We're on the right track to reach our goal by the end of this year or the beginning of next, in my estimation," Harker said.
