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Philadelphia  Fed  President Patrick Harker noted on Tuesday that the economic recovery in the US is still “a little fragile,” as reported by Reuters.

Additional takeaways

“Velocity of inflation matters, not just the level.”

“There are lots of reasons including technology and globalization that are keeping prices down.”

“In the longer run, the Fed wants inflation to run slightly above 2% because it’s been consistently below target.”

“The Fed is not anticipating inflation running out of control.”

“The Fed knows the tools to deal with higher inflation.”

“News on Johnson & Johnson vaccine could fuel more vaccine hesitancy.”

“If we don’t get herd immunity we are not going to get the economy fully back.”

“Pulling back accommodation doesn’t make sense right now.”

“The Fed has time to move because inflation is not running out of control.”

“If inflation does run out of control, the Fed will act accordingly.”

Market reaction

The greenback remains on the back foot following these comments. As of writing, the US Dollar Index was down 0.22% on a daily basis at 91.88.