Reuters reported that Philadelphia Federal Reserve Bank President Patrick Harker on Wednesday said he expects the US central bank to deliver two more half-point rate hikes before switching to quarter-point increments until the “scourge” of inflation is beaten back.
“Going forward, if there are no significant changes in the data in the coming weeks, I expect two additional 50 basis point rate hikes in June and July,” Harker said in remarks prepared for delivery to the Mid-Size Bank Coalition of America.
“After that, I anticipate a sequence of increases in the funds rate at a measured pace until we are confident that inflation is moving toward the Committee’s inflation target.”
While the comments have had no direct impact on markets, there is an undertone of hawkishness at the Fed that is roiling markets on Wednesday.
As a consequence, the US dollar is firmly higher on Wednesday, on pace to snap a three-session losing streak. Rising inflation has knocked sentiment following yesterday’s WSJ interview with the Federal Reserve Chair Jerome Powell who struck a more hawkish tone.