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The US Federal Reserve will accept periods of above-2% inflation after long periods of sub-2% inflation, Philadelphia Fed President Patrick Harker said on Friday, as reported by Reuters.

“Building an equitable workforce recovery is not just ― in my view ― a moral necessity, but an economic one as well,” Harker added while delivering his prepared remarks prepared at a virtual conference. “Get money into the hands of people most likely to spend it, and you’ll see a multiplier effect throughout the broader economy,” Harker argued and said that many jobs lost during the pandemic will not return.

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen gaining 0.2% on the day at 93.90.