Philadelphia Fed President Patrick Harker warns that high inflation, fueled partly by tariffs, will keep monetary policy tight as labor market conditions deteriorate.
Philadelphia Fed President Patrick Harker highlighted challenges in fulfilling the central bank’s dual mandate amid a weakening labor market and persistent inflation. He cited tariffs as a contributing factor to elevated prices, with service inflation posing a significant concern. Harker said monetary policy will remain tight to curb inflation, and tariffs are expected to sustain higher rates until early next year.