Philadelphia Fed President Patrick Harker said in a Nikkei interview that he’d like to start tapering asset purchases. He sees “elevated risk” of inflation running higher.
He said, “my baseline forecast is still to have inflation around 4% this year, ending this year, and then starting to fall back to 2% over the years 2022 and 2023. However, I do see elevated risk that inflation could run higher”.
“I’d like to start the taper process soon, so that we can finish the tapering process, so if we need to increase the policy rate, we have the room to do that. And I think we need to buy ourselves that option,” he added.
