Federal Reserve Bank of Philadelphia President and CEO Patrick Harker addressed inflation concerns during a speech at the University of Delaware. He emphasized that while progress towards the 2 percent annual inflation target has slowed, current monetary policy should continue to apply downward pressure on prices.
Harker stated, “The policy rate remains restrictive enough to continue putting downward pressure on inflation over the longer term, as we need it to, while not negatively impacting the rest of the economy. Let’s stick to the game plan.”
Despite ongoing efforts against high inflation, Harker highlighted that the labor market is largely balanced and GDP remains strong. However, he acknowledged that many families are still struggling with inflation’s effects.
“From the macro view, the data I currently see allows me to provide an economic outlook that is optimistic, despite the ongoing challenge of getting inflation back to target. Yet the data also helps me to understand why, on the micro level, not every American family or business may be feeling similar optimism,” he said.
Harker delivered his remarks at an Economic Forecast event co-sponsored by Lyons Companies and the University of Delaware’s Center for Economic Education and Entrepreneurship. During this event, he received the James B. O’Neill Award in Economic Education for his contributions in enhancing economic education opportunities.
The Federal Reserve Bank of Philadelphia plays a crucial role in formulating monetary policy and supervising financial institutions across eastern and central Pennsylvania, southern New Jersey, and Delaware.
