Last week's rate hike by the Federal Open Market Committee, was "prudent," Federal Reserve Bank of Philadelphia President Patrick T. Harker said in a televised interview Monday.

Saying that the plan to raise rates three times this year "made sense," Harker said on CNBC, moving last week was the "prudent action" because he would "like to pace it out."

Noting the Fed uses the headline personal consumption expenditures index, which is at 1.9%, Harker said "there will be a little bit of an overshoot [of the Fed's 2% target], but that's OK."

He said more important than the inflation number is the momentum, "and the momentum is in the right direction."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.