Patrick Harker is the President of the Philadelphia Federal Reserve.
The policymaker said he is concerned about the inflation rate running at its highest level in 40 years. He thinks the Fed will raise rates and reduce the amount of bonds it has on its balance sheet.
Harker told the Delaware State Chamber of Commerce that he was concerned about inflation.
Generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I and my colleagues on the Federal Open Market Committee are comfortable with.
The day before, two of his colleagues, Governor Lael Brainard and San Francisco Fed President Mary Daly, expressed concern over inflation. Brainard, an influential policy who favors lower rates and less restrictive monetary policy, said reducing inflation is of paramount importance.
Bond yields rose after the comments.
Brainard's view on rate hikes was similar to Harker's comments.
He said he expects a series of deliberate, methodical hikes as the year continues and the data evolve.
Harker is a non-voting member of the committee. He sees growth as robust and expects inflation to come down to the Fed's 2% goal.
The first rate increase in more than three years was approved at the March meeting. Short-term borrowing rates could go to 3% or above in a succession of increases.
The minutes from that meeting will be released at 2 p.m. Time. Chairman Powell said the summary would reflect discussions on the bond holdings, which have brought the balance sheet to $9 trillion.
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