Philadelphia Fed President Patrick Harker: Supports a gradual tightening of monetary policy

Philadelphia Federal Reserve President Patrick Harker stated that he supports a gradual increase in interest rates, noting that current wage pressures are limited and inflation expectations are consistent with the 2% target. Harker believes that a gradual tightening of policy is appropriate, but he would act more quickly if inflation expectations rise, wage pressures increase, or underlying inflation increases. Patrick Harker points out that slowing the pace of interest rate hikes gives households, businesses, and the financial sector time to adjust and allows policymakers to assess the data. A gradual approach is most effective when the policy direction is clear. (Source: Sina Finance)