Philly Fed chief Harker backed September rate hike, WSJ says

If the US economy can withstand tighter monetary policy then the country´s central bank, the Federal Reserve, should raise rates, a top policymaker told the Wall Street Journal.

“There are risks of hanging around zero too long. And if the economy can withstand it, I think it’s appropriate to move,” Patrick Harker, the president of the Federal Reserve Bank of Philaldephia, told the Journal in an interview published on 13 October.

Commenting on his approach to setting policy, Harker added: "I tend to be more of a pragmatist [...] You come into this understanding that while we have a deep bench of theorists and empiricists that need to inform policy, at the end of the day you need to base your judgment not on an ideology, but on the facts on the ground, right, as best we know them.”

“You should have a lot of humility to say we really don’t know exactly what’ll happen. That’s why we move cautiously, but move, to see what happens.”

Harker told the Journal he agreed with those on the Federal Open Market Committee who voted in favour of a 25 basis point rate hike at the 21 September policy meeting.

To take note of, in a prior speech Harker defended the benefits for society of free trade and immigration, the Journal emphasised.

“A connected world is a better place, and trade helps far more people than it hurts—we just need to find a way for everyone to benefit from that free exchange,” Mr. Harker said on that occasion.

The Philly Fed chief was set to become a voting member of the FOMC in 2017.

As of 1505 BST the yield on the benchmark 10-year US Treasury note was higher by three basis points to 1.78%.