Fed’s harker says concerned about falling behind curve on inflation

The Federal Reserve Building in Washington

DUBLIN (Reuters) – The U.S. Federal Reserve is at risk of falling behind the curve on inflation if it does not normalize rates sooner rather than later, the head of the Philadelphia Fed Patrick Harker said on Thursday.

“I think core inflation… whatever measure you look at is moving towards the 2 percent target,” Harker said in an interview with Bloomberg Television.

“I am convinced we will achieve that sooner rather than later so I am somewhat concerned about falling behind the curve,” he said.

Harker said he expected a shallow path of rate normalization and said it was not clear yet if the Federal Reserve would lift rates at its December meeting. He said the November meeting should not be ignored.

(Reporting by Conor Humphries)