MNI POLICY: Fed's Harker: Should Hold Rates Steady For A While

By Jean Yung

     WASHINGTON (MNI) - Federal Reserve Bank of Philadelphia President Pat

Harker on Monday flagged the impact of the coronavirus as "something to watch"

but maintained his view that U.S. interest rates are where they should be amid

positive developments in labor markets and inflation. 

     "My own view right now is that we should hold steady for a while and watch

how developments and the data unfold before taking any more action," he said in

remarks prepared for a University of Delaware economic conference. 

     "It's too early to say what impact the spread of the coronavirus will have

on the global economy, but the negative effects on the Chinese economy and

international travel are something to watch." 

     Citing high consumer confidence, a healthy labor market and a "generally

positive" economic outlook, Harker reckoned that the Fed was on track to get

back to its 2% inflation target. 

     "Overall, I think the economy is in good shape," he said. 

--MNI Washington Bureau; +1 202 371 2121; email: evan.ryser@marketnews.com

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