Federal Bank President Patrick Harker does not anticipate inflation running out of control

The Philadelphia Federal Bank President Patrick Harker in a statement on Tuesday said that it is unlikely that inflation will run out of control this year as the U.S. economy rebounds from the coronavirus crisis.

 

If it does, however, he also said that the Federal Reserve has the tools to deal with it. Policymakers can track the velocity of inflation changes, not just the level, Harker had said during a virtual discussion organized by the Delaware State Chamber.

Fed officials want inflation to run above the central bank’s 2% target over the long term to make up for extended periods of price changes running below the desired level, he said.