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Harker (’23 voter) Appears Little Swayed By Strong Payrolls Report

FED
  • Speaking in an interview for the first time since the Feb 1 FOMC and a strong payrolls report, Philly fed’s Harker (’23 voter) rate outlook appears very similar to prior comments: he favours getting rates above 5% and then pausing (previously slightly above 5%).
  • In other comments, he sees it “more probable now” that we can pull off a soft landing, with a good chance of doing so if inflation keeps easing.
  • Labor market issues are seen outside the realm of mon pol with these structural issues needing to be addressed, but he's not concerned about a wage price spiral.

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