Fed’s Harker indicates the Fed Funds rate is going to be staying on hold

Federal Reserve Bank of Philadelphia President Patrick Harker speaks on his economic outlook before the Lyons Economic Forecast, presented by the University of Delaware’s Center for Economic Education and Entrepreneurship.

Adding some policy thoughts too:

• In December, was on the fence between thinking 1 or 2 rate cuts appropriate this year.Right now, there’s a lot of uncertainty.With uncertainty, I’m in the camp of for now let’s stay where we are.Barring any change in inflation reports, sitting here is the appropriate thing.We are restrictive now.Tariffs are one inflationary possibility; losing people in the labor market is another, if it continues.
• Surveys on inflation expectations and consumer sentiment show consumers are getting nervous.Cannot let inflation expectations tick up, need to give it a little more time to see where it will land.We should not take any action off the table, we could move in either direction.Where we are now is ‘steady as she goes’ on rates.

This article was written by Eamonn Sheridan at www.forexlive.com.