Federal Reserve members, including chair Jerome Powell, are sending a clear message - they want to get rates down to two percent. However, some are taking a more hawkish stance than others. Philadelphia Federal Reserve President Patrick Harker wants to let 'things work through the economy.' Harker tells Yahoo Finance's Jennifer Schonberger what he is hearing from people who live in his district that they want to be able to digest all the rate increases the Fed has done this year. However, Harker stresses that 'not raising rates right now still means we are in a restrictive stance, we're still putting pressure on the economy,' and that data will dictate his decisions. Right now, Harker doesn't see a re-acceleration in inflation and that he would like to 'hold and see how things turn out.'The Fed is 'clearly going to hold through the end of the year,' Harker said, and that next year, data will dictate whether or not the Fed cuts rates. In order to get to a point where the Fed will cut, Harker says there needs to be 'clear signs' inflation is moving towards the Fed's two percent target, something he says 'is gong to take some time.' Overall, Harker says a soft landing scenario is the 'most probable,' but it's not guaranteed. Key video moments 00:00:22 Harker's current thinking on rates 00:02:00 Harker's on the September meeting 00:02:19 How long will the Fed keep rates high? 00:03:45 When could the Fed cut rates? 00:04:45 Harker on a soft landing 00:05:30 Relationship between wages and inflation 00:06:45 How demographics are impacting the economy and what the Fed does 00:10:00 Harker discusses what he is hearing at the symposium
chair Jerome Powell, are sending a clear message - they want to get rates down to two percent. However, some are taking a more hawkish stance than others. Philadelphia Federal Reserve President Patrick Harker wants to let"things work through the economy." Harker tells Yahoo Finance'swhat he is hearing from people who live in his district that they want to be able to digest all the rate increases the Fed has done this year.
Right now, Harker doesn't see a re-acceleration in inflation and that he would like to"hold and see how things turn out." The Fed is"clearly going to hold through the end of the year," Harker said, and that next year, data will dictate whether or not the Fed cuts rates. In order to get to a point where the Fed will cut, Harker says there needs to be"clear signs" inflation is moving towards the Fed's two percent target, something he says"is gong to take some time." Overall, Harker says a soft landing scenario is the"most probable," but it's not guaranteed.
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