(Reuters) -Philadelphia Federal Reserve President Patrick Harker said on Thursday that trouble may be brewing for a U.S. economy that is currently in good shape but showing signs of stress in the consumer sector and risks to the inflation outlook. 

"Unemployment still low, still getting growth, but there are threats to this. We're starting to see that confidence is starting to wane" on both the consumer and business fronts, Harker said in remarks at his regional Fed bank. 

While inflation has been retreating, "I'm worried that right now that is at risk, that decline is at risk," he said, while adding it's still his expectation that price pressures will continue to retreat. Harker also said there is mounting evidence that the consumer sector is "under stress," especially for those who aren't wealthy.

While Harker did not say what he thinks the U.S. central bank should do with interest rates in this environment of uncertainty, he said "I'm an avowed pragmatist when it comes to policy" and in highly uncertain periods, "you don't go very fast in either direction."

He spoke as Trump administration policies roil the economy and markets and kindle fears of a resurgence in inflation and slowdown in economic growth. Markets have been pricing in more Fed rate cuts this year amid worries about growth and hiring.

Harker, who is due to retire from his position at the Philadelphia Fed later this year, also said he's worried about government borrowing and the dollar's ongoing role as the world's reserve currency. He said the currency's status is underpinned by the rule of law, but sees threats on that front. When it comes to keeping the dollar strong, "that's not one I lose sleep over right now, but I'm starting to worry more and more."