Harker gave the strongest statement yet from a central bank official that easing is almost a certainty next month.
Philadelphia Federal Reserve President Patrick Harker provided a strong endorsement to an interest rate cut on the way.Kansas City Fed President Jeffrey Schmid also spoke to CNBC, offering a less direct take on the future of policy, though he leaned toward a cut ahead.Philadelphia Federal Reserve President Patrick Harker on Thursday provided a strong endorsement to an interest rate cut on the way September.
"I think it means this September we need to start a process of moving rates down," Harker told CNBC's Steve Liesman during a "With markets pricing in a 100% certainty of a quarter percentage point, or 25 basis point cut, and about a 1-in-4 chance of a 50 basis point reduction, Harker said it's still a toss-up in his mind.The Fed has held its benchmark overnight borrowing rate in a range between 5.25%-5.5% since July 2023 as it tackles a lingering inflation problem.
Harker does not get a vote this year on the rate-setting Federal Open Market Committee but still has input at meetings. Another nonvoter, Kansas City Fed President Jeffrey Schmid, also spoke to CNBC on Thursday, offering a less direct take on the future of policy. Still, he leaned toward a cut ahead.as a factor in where things are going. A severe supply-demand mismatch in the labor market had helped fuel the run in inflation, pushing wages up and driving inflation expectations.
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