Philadelphia Fed President, Patrick Harker, shared his insights on the current stance of Fed’s monetary policy. Addressing the topic of monetary tightening, Harker said, “Right now, I think that we’ve probably done enough because we have two things going on.”
Elaborating further, Harker mentioned the twin pillars that have influenced his perspective: “The Fed funds rate increases — they are at a restrictive level, so let’s keep them there for a while. And also we are continuing to shrink our balance sheet that is also removing accommodation.”
Looking to the future, Harker emphasized a data-driven approach, noting, “I see us staying steady throughout the rest of this year, next year is data driven.” When prompted about the potential timing of a rate cut, he candidly stated, “Can’t predict when Fed will cut rates.”
