WASHINGTON, March 25 (Xinhua) -- Patrick Harker, president of Federal Reserve Bank of Philadelphia, said on Monday that U.S. Fed could have one rate hike "at most" in 2019 and another rate hike in 2020.
"My current view is that, at most, one rate hike this year, and one in 2020, is appropriate, and my stance will be guided by data as they come in and events as they unfold," said Harker, a centrist among the Fed's top officials.
Harker said that he expected economic growth was "a bit above 2 percent" for the year of 2019, mainly due to structural problems within the United States.
"That reflects structural, slow-moving forces - like demographics, muted growth in the labor force, and lower productivity growth - rather than any temporary headwind," said Harker.
For the picture of economy, Harker believed that personal consumption expenditures, commonly known as PCE, remained the primary driver of real GDP growth in the United States. Specifically, household spending continues at a "strong, sustained pace."
"Businesses, however, have reported an increase in uncertainty and a decrease in confidence. Coupled with tighter financial conditions, the investment outlook is not quite as rosy as last year," said Harker.
Speaking of the Fed's latest plan to end balance sheet run-off, Harker note that the Fed "still have some normalizing to do".
The central bank of the United States intended to slow the reduction of its holdings of Treasury securities by reducing the cap on monthly redemptions from the current level of 30 billion U.S. dollars to 15 billion dollars beginning in May, according to a statement released by the Fed on Wednesday, March 20.
