Fed’s Harker drops a rate hike hint bombshell – ‘could move in either direction’

Federal Reserve Bank of Philadelphia President Patrick Harker is not ruling out a rate hike.

I posted his comments here:

Since the post went up I have a added in a few more of his comments, as he continues to speak.

Notable is this:

• We should not take any action off the table, we could move in either direction.

I’m gonna go out (not too far) on a limb and say he is leaving his options open and there is no serious consideration being given to a rate hike. At least not imminently. All his other comments poin to a greater likelihood of a cut. But, again, not imminently.

More:

• Policy is mildly restrictive
• we are heading back to tend in the labour market and slowly but surely on inflation
• at some point shelter inflation has to come down