2017.06.2118:39:00UTC+00Senior Fed Official Rebuffs Rate Hike Decision Criticism

A senior policymaker of the U.S. central bank brushed off investor worries that the Federal Reserve's rate-setting committee has made a mistake in raising interest rates in spite of the weak inflation and said that the central bank should push on with the plans to trim its massive balance sheet.

Philadelphia Fed Reserve President Patrick Harker said he was in favor of standing pat on rates in the coming months while they begin to trim the central bank's asset portfolio. However, he underlined that businesses he is in contact with were significantly being pressured by calls for wage increases due to the solid jobs market and that he anticipated inflation should eventually regain its footing.

He also insisted that the Fed should begin its plan to unwind reinvestments of the proceedings of securities on its $4.5 trillion balance sheet. He argued that the economy, given its current condition, is resilient enough that they can begin their long time plan of phasing out the Fed's reinvestment policy.