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Fed's Harker: 4 rate hikes possible in '18 amid inflation rebound

Federal Reserve Bank of Philadelphia President Patrick Harker said May 21 that he could support a total of four rate hikes in 2018 if inflation continues rebounding, according to Reuters.

Harker is not a voting member this year on the Federal Open Market Committee, which opted for a rate hike in March and is expected to do so at least three times this year.

He had said in February that he wanted the Fed to raise its benchmark federal funds rate only twice due to the "continued stubbornness" of weak inflation figures.

Now that inflation is around the Fed's 2% goal, Harker said at a New York event that he supports three moves in 2018 and perhaps a fourth, according to Reuters. Harker said it is "appropriate to continue to move rates up judiciously," with another rate hike possible as early as June, Reuters reported.

Earlier in the day, Atlanta Fed President Raphael Bostic said he saw some "upward pressure" on inflation, noting that he and his staff are "beginning to discern a shift in sentiment" from their business contacts on price growth.