President Patrick Harker of Philadelphia Federal Reserve said he would currently support three interest rate hikes this year, starting from March. He also added he is open to more if inflation worsens.
Labor department data showed CPI increased 0.5% last month after rising 0.8% in November, while in the 12 months through December, the CPI surged 7.0%
In an interview with Financial Times, Harker said the central bank had few tools to combat the supply chain problems fuelling inflation, but it should act to slow some of the demand.
Harker’s comments echos Fed’s stance on combating inflation. FED earlier signaled three rates hike in 2022.
Atlanta Fed President Raphael Bostic made similar comments of supporting at least three times this year, beginning as soon as March.
Both Bostic and Harker are non-voting members of the Fed’s rate-setting committee this year.
