Fed’s Harker Expects Pace of Rate Hikes to Slow in Months Ahead
- Philadelphia Fed chief says half-point move still significant
- He sees rates being held for a while, can raise more if needed
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Federal Reserve Bank of Philadelphia President Patrick Harker said he expects the central bank to slow the pace of interest-rate hikes in upcoming months as US monetary policy approaches restrictive levels.
“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,” Harker said Thursday in the text of his remarks to the Risk Management Association’s Philadelphia chapter. “But I want to be clear: A rate hike of 50 basis points would still be significant.”