Harker: Stresses Commitment To Inflation Goal, While Flagging Need To Assess The Data

Philadelphia Fed President Harker ('23 voter) has underscored the central bank’s commitment to lowering inflation to its 2% goal, with a hat tip to a need to watch the data to see what, if any, further action is needed to combat inflation (marginally dovish comment, given that he has previously noted that rates need to be moved above 5.00%).

• Harker followed up the initial round of comments with another seemingly dovish overture, pointing to a need to be careful not to overdo it when it comes to tightening.
• Harker reiterated the idea that the U.S. banking system is “sound and resilient,” while also noting that there are “promising signs” that steps taken to slow the U.S. economy are working.
• Harker also flagged a potential 18-month lag re: the time that it takes to feel the impact of monetary policy moves.