Text released from Fed's Harker at 9 AM ET, key points:
- Inflation still remains far too high.
- I anticipate core PCE inflation of 3.5% in 2023 and 2.5% in 2024.
- I forecast flat GDP this year and a 1.5% rise next year.
- This year, I expect core PCE inflation to moderate to 4.8%.
- I am seeing signs that the pace of the economy is moderating.
- The jobs market is still hot however I expect unemployment to rise to 4.5% next year.
- Future hikes by the fed will be data-driven.
- The Fed needs to see a consistent decline in inflation to moderate the rate hike campaign.
- Rate hikes by less than 75 bps are still significant.
- The Fed will need to access how rate hikes have been affecting the economy.
- Going forward, I expect the jobs market to remain healthy.
