Philly Fed's Harker views a 2019 end to the tightening cycle
Philly Fed's Harker views a 2019 end to the tightening cycle as a distinct possibility in his opinion, in a CNBC interview. He believes the neutral rate is in the 2.75% to 3% area, and he's been expecting three 25 bp tightenings this year and next. But, he would consider a 4th hike this year if inflation accelerated. However, he wouldn't really want to boost rates above the neutral rate for fear of having to backtrack subsequently. Harker went on to discuss the topic of the Dallas/Atlanta Fed's conference on tech disruption in the job market, warning that employee skill sets need to be constantly updated in the modern world. Harker is a moderately hawkish non-voter. Markets remained focused on the aftermath of supply, along with trade and geopolitical developments. Stocks rebounded from lows as Trump sounded like he wouldn't rule out a meeting with Kim of N. Korea at some later date.