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The Federal Reserve Board hasn’t seen inflation run wild, Harker says.

Philadelphia Fed Governor Patrick Harker said Tuesday that the Federal Reserve Board saw inflation rising towards its annual target of 2%, but did not see runaway price pressure.

“At this point, we don’t expect inflation to go out of control,” Harker said in a webinar hosted by the Delaware Chamber of Commerce.

“We haven’t seen inflation run wild, so we have time to move. If so, we’ll act accordingly,” he said.

The consumer price index rose 0.6% in March, the largest month-on-month rise since 2012. The 12-month interest rate rose to 2.6%.

read: US consumer prices soar in March

The Federal Reserve Board expects its favorite indicator, the consumer spending index, to accelerate to 2.4% annually this year before withdrawing next year.

Many economists are concerned that large-scale fiscal stimulus measures passed by Congress earlier this year will overheat the economy and significantly raise consumer prices.

The answer to this debate will not come until later this year. So far, inflation could rise to 3.7% annually in May, as weak measurements from last spring deviate from measurements due to a pandemic.

Federal Reserve Board Chair Jerome Powell told CBS News’ 60 Minutes program on Sunday. The Federal Reserve Board will wait for inflation to see before it breaks out of its loose monetary policy stance. In the previous economic recovery, the Fed removed accommodation based on higher price forecasts.

Continuing to step into monetary policy gas increases the risk that central banks will be delayed in raising interest rates. In other words, interest rates need to be raised to curb inflation.

In his remarks, Harker supported Powell’s slow approach.

“Economic conditions are improving, but recovery is still in its infancy and there is no reason to withdraw support,” Harker said.

Harker said the recovery remains a bit vulnerable.

Suspension of use of Johnson & Johnson vaccine He said it may encourage more vaccine repellent.

“This is a very vulnerable recovery with the variants we are seeing. One of the tasks is to control this virus. So now it makes sense to withdraw accommodation for me. No, “he said.

Technology Stock prices were high on Tuesday However, the Dow Jones Industrial Average

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The Federal Reserve Board hasn’t seen inflation run wild, Harker says. The Federal Reserve Board hasn’t seen inflation run wild, Harker says.

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