Philadelphia Fed President Patrick Harker said, “In the upcoming months, in light of the cumulative tightening we have achieved, I expect we will slow the pace of our rate hikes as we approach a sufficiently restrictive stance.”
He added, “at some point next year, I expect we will hold at a restrictive rate for a while to let monetary policy do its work”. What happened after there will be driven by data. “If we have to, we can always tighten further, based on the data.”
“What we really need to see is a sustained decline in a number of inflation indicators before we let up on tightening monetary policy,” he said, adding “we need to make sure inflation expectations don’t become unanchored.”
