Fed's Harker sees 'sound' economy, forecasts future rate hike

The U.S. economy could still deliver 'sound' growth and warrant a single rate hike 'at most' this year, a Federal Reserve policymaker said on Wednesday. Federal Reserve Bank of Philadelphia President Patrick Harker said a strong labor market, muted inflation and ongoing growth 'point to a fundamentally sound U.S.

Reuters April 18, 2019 00:06:24 IST
Fed's Harker sees 'sound' economy, forecasts future rate hike

Feds Harker sees sound economy forecasts future rate hike

The U.S. economy could still deliver "sound" growth and warrant a single rate hike "at most" this year, a Federal Reserve policymaker said on Wednesday.

Federal Reserve Bank of Philadelphia President Patrick Harker said a strong labor market, muted inflation and ongoing growth "point to a fundamentally sound U.S. economy." But he noted there is enough uncertainty that policymakers should be "patient as the data roll in."

"I continue to be in wait-and-see mode, and my outlook for rates remains, at most, one hike for 2019 and one for 2020," Harker said in a speech delivered at the Greater Vineland Chamber of Commerce in New Jersey. The remarks largely reiterated views Harker has presented in other recent speeches.

Harker does not vote on the rate-setting Federal Open Market Committee this year but participates in its deliberations.

After its March meeting, the Fed released projections that reduced the number of hikes expected this year to zero from the two forecast in December. That completed a pivot to a less- aggressive policy in the face of an apparent jump in economic risks, including the U.S.-China trade conflict and a global slowdown. At least nine of the Fed's 17 policymakers reduced their outlook for the fed funds rate.

The central bank currently targets short-term rates between 2.25%-2.50%.

Data released on Wednesday showed the U.S. trade deficit fell to an eight-month low in February as imports from China plunged, providing a boost to economic growth in the first quarter.

The Atlanta Federal Reserve bumped up its gross domestic product growth forecast to a 2.4% pace from smaller estimates previously.

(Reporting by Trevor Hunnicutt in New York; Editing by Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash
Business

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash

(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.

Bayer settles Roundup cancer lawsuits for up to $10.9 billion
Business

Bayer settles Roundup cancer lawsuits for up to $10.9 billion

FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.

Sudan to establish trade financing fund in face of forex shortage
Business

Sudan to establish trade financing fund in face of forex shortage

KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate