Courtesy of Mish.
The market is openly mocking Patrick Harker, president and chief executive officer of the Federal Reserve Bank of Philadelphia.
Harker dismisses Brexit as a worry (In general so do I, but politicians can go crazy, so the outcome is uncertain as they say).
That said, I agree with the market view on hikes vs. that of Harker.
The Wall Street Journal reports Fed’s Harker Dismisses Brexit, Suggests Two More Rate Hikes This Year.
Federal Reserve Bank of Philadelphia President Patrick Harker shrugged off the threat to the U.S. economy posed by the Brexit vote and indicated the U.S. central bank may have two more rate rises ahead of it this year.
“Brexit is low on my list of risks, and I do not anticipate more than a transitory couple of 10ths of a percentage point slowdown in growth” to by caused by that event, Harker said in the text of a speech to be delivered in Philadelphia.
The official said he projects the U.S. economy will continue to grow, adding that in this environment, the Fed remains on track to boost further the cost of borrowing, although he didn’t say when he expects those increases to happen. “I anticipate that it may be appropriate for up to two additional rate hikes this year,” with the funds rate target rate approaching 3% by the end of 2018, he said.
Patrick Harker
“Brexit is low on my list of risks” says Patrick Harker, Philadelphia Fed CEO. Harker sees 2 hikes in 2016, market laughs.
— Mike Shedlock (@MishGEA) July 13, 2016
Market Laughs at Harker
Trial Balloons
