Philadelphia Fed’s Harker: On Inflation, “Let’s Stick to the Game Plan”

For immediate release

Contact: Daneil Mazone, Media Relations

Newark, DE – Speaking on the campus of the University of Delaware today, Federal Reserve Bank of Philadelphia President and CEO Patrick Harker said that while progress on returning inflation to its target of 2 percent annually may have recently slowed, the current position of monetary policy should continue to exert downward pressure on prices and should be allowed to continue working.

Even with work against above-target inflation ongoing, Harker noted that the labor market has largely returned to balance and Gross Domestic Product (GDP) remains solid.

“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,” said Harker.

However, Harker also noted that he recognizes that many families continue to struggle with the effects of inflation.

“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 made his comments at the annual Economic Forecast event co-sponsored by Lyons Companies and the University of Delaware’s Center for Economic Education and Entrepreneurship.

Prior to his remarks, Harker was presented with the James B. O’Neill Award in Economic Education for his work, both in academia and at the Federal Reserve Bank of Philadelphia to enhance economic education opportunities for students, teachers, and consumers.

About the Federal Reserve Bank of Philadelphia

The Federal Reserve Bank of Philadelphia helps formulate and implement monetary policy; supervises state member banks, bank holding companies, and savings and loan holding companies; and provides financial services to depository institutions and the federal government. It is one of the 12 regional Reserve Banks that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. The Federal Reserve Bank of Philadelphia serves eastern and central Pennsylvania, southern New Jersey, and Delaware.