5/18, 10:56 PM (Source: TeleTrader)
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Fed's Harker expects two more rate hikes of 50 bps

President of the Federal Reserve Bank of Philadelphia, Patrick Harker (pictured), stated on Wednesday that he expects "two additional 50 basis point rate hikes in June and July," if there are no significant changes in the data in the coming weeks.

Harker predicted economic growth of about 3% this year, despite GDP declining in the first quarter. "Underlying demand growth remains strong, and the job market should stay tight through 2022," Harker stated.

Fed's Harker explained that high inflation comes as a result of several factors, including COVID-19 lockdowns, which resulted in damaging supply chains and causing shortages that further led to higher prices.

Baha Breaking News (BBN) / TB