Patrick Harker, president of the Federal Reserve Bank of Philadelphia.

Charles Mostoller | Bloomberg | Getty Images

Patrick Harker, president of the Federal Reserve Bank of Philadelphia.

Philadelphia Federal Reserve Bank President Patrick Harker said Friday he still has “penciled in” an interest rate hike in December, and three more rate hikes next year, despite weak inflation.

“Labor markets feel really tight,” Harker said at a conference in Philadelphia on Fintech, adding that it was appropriate for the Fed to take a pause for now in raising rates as it begins to shrink its $4.5 trillion balance sheet. Low inflation is a concern, especially since the Fed may be under-estimating productivity, which means it may also be over-estimating inflation.

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