Fed's Harker: If rate rises do happen, it will not be until the end of 2023

Fed’s Harker sees H2 US economic growth of 5% to 6%, although stated that the US need to confront vaccine hesitancy.

He added that If rate rises do happen, it will not be until the end of 2023, but yield curve control was one of the Fed's possible tools.

He said the tapering playbook will be similar to the last recovery. 

Market implications

The market, on the other hand, questions whether higher prices and borrowing costs will lead to higher than expected inflation.

In this context, all eyes will be on the Fed chair's speech on Thursday.

In the last week of fedspeak before the march meeting, markets will want to see whether Powell addresses the steepening. if he does, this could add to fears of an early taper.