Philadelphia Fed President Patrick Harker Signals End to Interest Rate Hikes

Philadelphia Federal Reserve President Patrick Harker suggests that the central bank may be at the end of its current rate-hiking cycle, citing progress in the fight against inflation and confidence in the economy. Harker believes that, barring any alarming new data, the Fed can be patient and hold rates steady to let previous monetary policy actions take effect. This comes after the Fed's 11th rate hike since March 2022, bringing the key interest rate to its highest level in over 22 years. While projections in June pointed to another hike this year, there are differing opinions among committee members. Markets are pricing in a high probability of the Fed maintaining rates at its September meeting, and Harker indicates that rate cuts are unlikely in the near future. He expresses confidence in a gradual progress towards the Fed's inflation goal and a soft landing for the economy.