Skip to content

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

By

February 10, 2023, 5:51 PM UTCUpdated onFebruary 10, 2023, 6:22 PM UTC

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.”