Fed’s Harker
Philadelphia Fed Pres. Harker is speaking and says:
- Current economy argues for stay rate policy for now
- monetary policy into place right now.
- Future Fed rate policy choices will be data-driven.
- The Fed policy stance should continue to lower inflation.
- Inflation is elevated and has been a sticky over recent months.
- See inflation back to 2% target over next two years.
- Labor market largely in balance.
- Currently functioning from position of strength.
- Unsure what impact new government policies will have on the economy.
On January 9, Patrick Harker reaffirmed that the FOMC remains on a rate-cutting path, though future decisions will be driven by incoming data. He noted that the labor market has stabilized and the pace of job creation has normalized, signaling a more balanced employment landscape. Additionally, he highlighted the Fed’s success in bringing inflation down from its peak.
With Harker set to retire in June 2025 and not a voting member this year, uncertainty remains over whether another rate cut will occur before his departure.