Federal Reserve's Harker: If inflation trends do not cool down, the Federal Reserve may need to act "promptly"

Golden Finance reports that on June 2nd, Federal Reserve's Harker stated that given the many uncertainties in the economic outlook, maintaining interest rates at current levels is reasonable, but officials may need to act quickly to address the rising inflation problem. Harker said she is more concerned about inflation because it has exceeded the Fed's 2% target for five years; meanwhile, the labor market remains strong, which she is not too worried about. Harker stated that the Federal Reserve's benchmark interest rate "may not be restrictive," and she has not heard business owners complain that high interest rates are hindering their investments. Price pressures are "more broadly distributed," covering goods and non-housing services.
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