Free Trial
AUSSIE 10-YEAR TECHS

(U2) More Stable But Still Fragile

USDCAD TECHS

Trend Structure Remains Bullish

US TSYS

Cautious Risk Appetite Gains Momentum

AUDUSD TECHS

Key Support Still Exposed

US STOCKS

Late Equity Roundup: 2W Highs

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: Harker Sees Fed Hiking to Neutral Without Recession

(MNI) Ottawa
(MNI)

Philadelphia Fed President also sees lingering inflation pressure from Ukraine and supply chains.

The Federal Reserve can bring interest rates to neutral and scale back its balance sheet without stalling out the economy in hopes of curbing inflation pressure that will persist because of the Ukraine conflict and supply chain breakdowns, Philadelphia Fed President Patrick Harker said Wednesday.

“We've committed to raising rates” in a methodical way “back to what you would consider neutral” which is around 2.5%, he said while answering questions after a speech. “The other thing we're doing is shrinking our balance sheet. You know, that ballooned to nine trillion dollars-ish during the pandemic, we need to start bringing that back down.”

Keep reading...Show less
153 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The Federal Reserve can bring interest rates to neutral and scale back its balance sheet without stalling out the economy in hopes of curbing inflation pressure that will persist because of the Ukraine conflict and supply chain breakdowns, Philadelphia Fed President Patrick Harker said Wednesday.

“We've committed to raising rates” in a methodical way “back to what you would consider neutral” which is around 2.5%, he said while answering questions after a speech. “The other thing we're doing is shrinking our balance sheet. You know, that ballooned to nine trillion dollars-ish during the pandemic, we need to start bringing that back down.”

Keep reading...Show less