Patrick Harker, Speech: Economic Outlook for Delaware and the Nation

“Inflation is widespread. It is showing up throughout a vast array of goods that comprise the CPI “basket” — and among some of those that aren’t in the basket.”

“The bottom line is that generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I — and my colleagues on the FOMC — are comfortable with. I’m also worried that inflation expectations could become unmoored.”

“That is why last month we announced we were raising the federal funds rate for the first time since 2018. We raised our target by 25 basis points, and I expect a series of deliberate, methodical hikes as the year continues and the data evolve. I also anticipate that we will begin to reduce our holdings of Treasury securities, agency debt, and mortgage-backed securities soon.”