Fed's Harker: May need faster hikes if inflation rises agressively

• Expects faster wage growth now
• Fed to reach employment target early this year
• 'Policy can truly normalize' as we move into H2
• Prudent to wait for stronger inflation before second hike
• May want to err on side of policy accommodation

Harker is a major hawk but these comments are more dovish than his recent statements.
"Although I cannot give you a definitive path for how policy will evolve, it might prove prudent to wait until the inflation data are stronger before we undertake a second hike," he said.