Philly Fed's Harker (neutral, 2020 Voter) on....>

FED: Philly Fed's Harker (neutral, 2020 Voter) on Fox Business just now

(front-running appearance later at Shadow Open Market Committee in NYC).

Paraphrasing a few select comments:

- Rates: 'think we should be on hold'...economy 'pretty good'. If inflation

expectations drift down, would be worried about that. Or if jobs numbers drift

down significantly, would be open to a rate cut.

- Inflation: some movement toward 2%, bolsters view that rates should be on

hold, see what happens. Expect wages to go up, labour market tight.

- Repo issues: Recent volatility in repo a bit bigger than expected. Fed's

thinking about level of reserves, distributions of reserves... Tsy issuance

hitting primary dealers... Lots of factors. We can put tools in place. Will

figure out over coming months

- Says getting close to the unwind of balance sheet finishing, organic balance

sheet growth beginning.

- Asked about federal debt: says concerned about debt overall (state/federal).

- Private sector not investing enough, partly due to trade policy uncertainty.