Fed’s Harker: Not expecting rate hike until late 2022 or early 2023
|Philadelphia Fed President Patrick Harker crossed the wires in the last hour and reaffirmed market expectations that the US central bank will soon begin tapering its asset purchases.
Key quotes:
- It will soon be time to begin slowly and methodically tapering asset purchases.
- Would not expect any interest rate hikes until late 2022 or early 2023.
- Expect GDP growth to come in at around 6.5% in 2021 before moderating to about 3.5% in 2022.
- Inflation should come in around 4% for 2021 and a bit over 2% for 2022.
- Failure by Congress to raise the debt ceiling could harm economic growth significantly.
Market reaction:
The comments did little to influence the US dollar, which shot to the highest level since November 2020. In fact, the key USD Index, which measures the greenback's performance against a basket of currencies, is now looking to build on the momentum further beyond the 94.00 mark.
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