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

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.

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