Bloomberg Surveillance · Friday, August 28, 2026
Former Philadelphia Fed President Patrick Harker identifies inflation and the Fed's credibility in fighting it as areas where Chair Kevin Walsh has the most influence, contrasting with less control over the treasury market and fiscal situation. Harker emphasizes that simply stating a tough stance on inflation isn't enough; action is required to signal the Fed's commitment to its 2% target.
“So he clearly doesn't have influence over the long end of the yield curve. That's never been the case, right? He does have influence over inflation and the credibility of the Fed in terms of inflation fighting. It's not enough just to say we're going to be tough on inflation. You actually have to do something.”
“But it's signaling what the Fed means when it says it's tough on inflation.”
“The Fed has to show that it's serious about getting that under control, getting to 2%. And the idea that we change the target, change the goalposts right now in the middle of this fight, that's just, you have to take that off the table. It makes no sense.”