Philadelphia Federal Reserve Bank President Patrick Harker stated on Monday that he does not expect interest rate hikes until the central bank ends the tapering of asset purchases.
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In a virtual event organized by the Economic Club of New York, Harker further stated that they were monitoring inflation very closely and are ready to take action.
The policymaker also expects inflation to average over the next year as supply-demand imbalances triggered by the pandemic are handled.
Harker echoed the policy message issued by the Fed officials last week after they announced they will start to reduce the rate of the central bank’s purchases of Treasury securities.
U.S. consumers’ short-term inflation expectations surged again in October, but the medium-term inflation forecast remained stable.
Harker projects that the U.S. economy to expand by nearly 5.5% this year and by 4% in 2022 if there is no new wave of COVID-19 infections.