U.S. Markets

Fed's Harker says he does not anticipate inflation running out of control

NEW YORK (Reuters) - It is unlikely that inflation will run out of control this year as the U.S. economy rebounds from the coronavirus crisis, and if it does, the Federal Reserve has the tools to deal with it, Philadelphia Fed Bank President Patrick Harker said on Tuesday.

Policymakers will track the velocity of inflation changes, not just the level, Harker said during a virtual discussion organized by the Delaware State Chamber.

Fed officials want inflation to run above the central bank’s 2% target over the longer term to make up for extended periods of price changes running below the desired level, he said.

Reporting by Jonnelle Marte; Editing by Chris Reese