Fed's Harker (non-voter, hawkish): Prudent to wait for more inflation growth before raising rates again, fewer rate increases should be needed to attain policy neutrality than in past recoveries
- Expect faster wage growth could translate into more robust inflation levels- Fed needs to move more cautiously when inflation is low
- Inflation will only move back to 2% very gradually
- If headwinds dissipate quickly and inflation picks up, Fed will need a more aggressive policy approach
- We will reach our employment mandate very soon, if we haven't already
- Slower China growth and USD strength are downside risks to the outlook- US consumer spending is growing at a solid pace