The U.S. central bank should be able to avoid drama like the infamous “taper tantrum” of 2013, said Philadelphia Fed President Patrick Harker, on Friday. “We’ve learned the lessons of the past and are being thoughtful and watchful as the year unfolds,” Harker said. “While it should be a year of developments, it should also be a boring one,” he said. Harker said the Fed has never before faced a need to shrink its balance sheet from $4.5 trillion, but said the process should remain “slow” and “mechanical.” The Philadelphia Fed President, who is not a voting member of the Fed’s interest-rate committee this year, said he thinks two rate increases this year would be the appropriate path of policy.
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