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Central Banks

Fed’s Harker Favors Rates Above 5%, Says Odds of Soft Landing Grow

  • Philadelphia Fed chief sees a couple more quarter-point hikes
  • Fed must be prudent, ensure inflation returns to goal
Patrick Harker
Patrick HarkerPhotographer: David Paul Morris/Bloomberg
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Philadelphia Fed President Patrick Harker said the odds of the Federal Reserve being able to control inflation without triggering a recession are growing, but that the key interest rate must get above 5% and stay there to ensure price pressures ease.  

“We actually are increasing the odds — we can get a soft landing. That doesn’t mean we’re out of the woods,” Harker said in an interview on Wharton Business Radio Friday. “It’s still possible, but I think we can avoid that by just being prudent.”