Federal Reserve Harker: We must continue to rely on data, not rush to take action
On January 9, Philadelphia Federal Reserve Chairman Harker stated on Thursday that he still expects the Fed to cut interest rates, but the policy path is shrouded in considerable uncertainty. Harker said: "I still believe we are on a downward path for policy interest rates. I do not intend to deviate from this path or turn around. The exact speed of progress will depend entirely on newly received data." Harker does not have voting rights this year. He said in his speech that "the overall foundation of our economy remains strong", but even so, "we are still in a very unstable period", which limits guidance for future policy paths. Harker pointed out that it takes longer than expected to bring inflation back to the 2% target. He also stated that the labor market has stabilized and remained healthy, with increasing signs showing low-income earners face greater pressure, which he finds concerning.
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