Fed's Patrick Harker Is 'Acutely Concerned' About Inflation, Sees 'Deliberate' Rate Hikes

• Philadelphia Federal Reserve President Patrick Harker joined the chorus of central bankers warning about inflation and the interest rate hikes needed to control rising prices. 
• In remarks Wednesday, the policymaker said he is worried about an inflation rate running at its highest level in 40 years. He anticipates the Fed will respond by raising rates and reducing the level of bonds it is holding on its balance sheet. 
• “The bottom line is that generous fiscal policies, supply chain disruptions, and accommodative monetary policy have pushed inflation far higher than I — and my colleagues on the [Federal Open Market Committee] — are comfortable with,” he said. “I’m also worried that inflation expectations could become unmoored.” 
• Stocks dropped and bond yields rose following the comments. 
• The policymaker expects “a series of deliberate, methodical hikes as the year continues and the data evolve,” though he wasn’t quite as emphatic about the issue of balance sheet runoff.

(Source: CNBC News)