LONDON (Reuters) - The dollar’s moves are not a major concern for the Fed currently, Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday.
“The dollar at this point is not high on my list of risks to worry about,” said Harker, one of the Fed’s current voting board members, during a European Economics and Financial Centre event in London.
“It is something that we have to continue to watch, but I don’t see it as very problematic at this point,” he added.
He said the dollar, which has dropped over 5.5 percent since the start of the year, was one of the fundamental channels of transmission of monetary policy the bank watched.
The U.S. dollar appreciated sharply against a basket of other currencies after the election of President Donald Trump, sparking concerns about a potential negative impact on U.S. exporters, but it has since returned to its pre-election levels.
The Federal Reserve raised U.S. interest rates for the second time this year last month but it was only the fourth time since the collapse of Lehman Brothers ignited the global financial crisis.
Reporting by Marc Jones and Helen Reid