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MNI BRIEF: Fed's Harker: Ukraine Conflict Argues for 25bp Hike

Uncertainty surround the Ukraine conflict and Covid-19 argues for a 25bp interest rate increase rather than a larger 50bp move, Federal Reserve Bank of Philadelphia Patrick Harker said in a SiriusXM interview broadcast Thursday.

"I don't think it's necessary right now," he said in the interview recorded Wednesday. "There's uncertainty about the virus. There's uncertainty about the tragic events that are unfolding right now in Eastern Europe in Ukraine. There's just tremendous uncertainty. So let's not add more uncertainty right now. Let's get it going with 25."

"I would not say never to a 50bp increase," he added. "If inflation really comes out at our next reading much higher than we'd hoped and we're not seeing any movement downward, I would be more open to it. But right now, I'm not."

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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