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Philadelphia Fed President Patrick Harker, when he last spoke
publicly in late May, predicted two to three rate increases this
year. Since then U.S. jobs growth plunged one month and then
shot back up the next, while Britons voted to leave the European
Union.
Harker, who has been at the Fed for a year, downplayed any
effects of the so-called Brexit referendum. He said
first-quarter U.S. economic weakness was largely due to seasonal
adjustments, and predicted both that inflation would hit a 2
percent target in 2017 and that the Fed would raise rates toward
3 percent by the end of 2018.
"Considering the economic projections, I anticipate that it may
be appropriate for up to two additional rate hikes this year,"
said Harker, who does not vote on policy this year.
"Brexit is low on my list of risks, and I do not anticipate more
than a transitory couple of 10ths of a percentage point slowdown
in growth," he added in prepared remarks.
The Fed raised interest rates from near zero in December, its
first policy tightening in nearly a decade. But it has kept its
key rate steady at 0.25-0.5 percent since then as global markets
and economic data have proven volatile.
(Reporting by Jonathan Spicer; Editing by Leslie Adler)
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