MNI BRIEF: Fed's Harker Says No Reason to Withdraw Support Yet

Philadelphia Federal Reserve Bank President Patrick Harker said Tuesday even while there are signs the economy has begun to turn around and could grow 5-6% this year, the central bank will continue to support a full recovery from the pandemic.

"While the economic situation is improving, recovery is still in its early stages, and there's no reason to withdraw support yet," said Harker in a speech before the Delaware State Chamber of Commerce. Harker isn't a voting member of the rate-setting FOMC this year.

His remarks on the need to keep the federal funds rate very low and continue making USD120 billion in monthly Treasury bond and mortgage-backed securities purchases comes after former Fed staffers told MNI an eventual move to pare back hefty bond-buying program could disrupt financial markets.