Fed’s Harker backs two more rate hikes this year, saying ‘things are looking good

• May 13, 2017
• realestate
• Business & Markets, Real Estate Finance

The U.S. central bank can keep raising interest rates with the labor market at full health and inflation on track to stabilize at 2%, said Philadelphia Fed President Patrick Harker on Friday. “Overall, things are looking good,” Harker said in a speech to the Urban Economic Policy Conference at Drexel University. “We’re essentially at normal now, and based on the strength of the economy, I continue to see two more rate hikes as appropriate this year,” he said. Harker, who is a voting member of the Fed policy committee this year, said he expected the economy to rebound from the weak 0.7% growth rate in the first quarter and said growth for the full year would be at about a 2.3% rate. That’s only a 0.1 percentage point downward revision to his previous estimate.