Philadelphia Federal Reserve President Patrick Harker said Friday he thinks the central bank can stop raising interest rates.
"Absent a stark turn in what I see in the data and hear from contacts ... I believe that we are at the point where we can hold rates where they are," Harker said in prepared remarks for the Delaware State Chamber of Commerce."Look, we did a lot, and we did it very fast." As a voting member this year on the rate-setting Federal Open Market Committee, Harker's words carry extra weight as policymakers contemplate their next step forward. Though his remarks align with what several other officials have said recently, they are perhaps the most explicit endorsement yet of a halt in rate hikes.
However, Harker did not rely on the market moves but instead said the Fed simply has made substantial progress in bringing down prices without causing a surge in unemployment or otherwise tanking the economy. He said it can now watch the impact that its rate hikes are having and use incoming data as its guide to where policy needs to go.
"Holding rates steady will let monetary policy do its work. I am sure policy rates are restrictive, and as long they remain so, we will steadily press down on inflation and bring markets into a better balance," he said."By doing nothing, we are still doing something. And, actually, we are doing quite a lot."Reports this week showed that 12-month rates for inflation are coming down but remain above the Fed's 2% annual target.
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