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8/23, 4:00 PM (Source: TeleTrader)
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Fed's Harker: No risk of inflation running out of control

Head of the Philadelphia Federal Reserve Bank Patrick Harker said on Thursday he believes there is no need for immediate action when it comes to inflation, noting that it is "moving around 2%" and despite "clearly "being a "conundrum" and the fact that many of underlying inflation trends are not fully understood, he is certain that there is no risk it is "running out of control." "Right now, we are where we need to be," Harker stated.

Harker pointed out that the biggest "drag" for the economy is business investment, but underlined that reducing interest rates "won't have eny effect" it, saying that business are on hold as is the Fed and will act "appropriately" if and when the economy has a "shock." Otherwise, he said, more certainty is needed regarding manufacturing, citing Germany as one of the many countries experiencing trouble in that sector.

Harker advised that the US should "stay the course" and wait how things play out, stressing that his views regarding the trade war has not changed, despite the latest batch of levies China imposed on the US earlier in the day.

Breaking the News / GG