Fed's Harker: Start Tapering Soon; Inflation May Be Long-Lived (Nikkei)

A Nikkei interview with Philadelphia Fed President Harker ('23 voter) has been published, some of the key comments are outlined below:

• On tapering: "I am supportive of moving toward a tapering process sooner rather than later. When exactly that happens, the committee needs to decide. I would hope sometime this year we would be able to start the tapering process. Once we start it, I think we keep it simple, we signal well in advance what we're doing to minimize any risk of a taper tantrum, and we just start the process and let it run for somewhere between eight to 12 months. "
• When questioned if it is appropriate to announce plans to start tapering at this upcoming FOMC: "That has not been decided, and I'd rather not comment on that."
• On rate hikes: "My forecast is late '22 or early 2023. If you start this tapering process, let that sink in to the economy, and let's see how the markets react. I do have some concern that the risks to higher inflation than we expect are elevated, and so I would like to leave open the option of a rate increase. But again, that depends on the state of the economy."
• When questioned if there has been any change in his forecast for the policy rates, compared with the previous forecasts, in June or March: "Not for me, no."
• Click for full interview.