Harker is retiring in June so I don’t know how much we should be listening to him.

• Policy rate remains restrictive enough to put downward pressure on inflation
• Fed watches the data, then reacts if we must
• Progress towards 2% inflation target has slowed
• Should not move to act on policy in either direction based on one report covering one month of data
• Optimistic on economic outlook, despire challenge of getting inflation back to target

This article was written by Adam Button at www.forexlive.com.