Central Banks
Fed’s Harker Sees Interest Rates Moving to Some Level Above 5%
- Official says inflation is moving lower but only slowly
- Harker says data will dictate how high the Fed will need to go
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Federal Reserve Bank of Philadelphia President Patrick Harker said he believes policymakers will need to raise interest rates to some level above 5% to counter inflation that is retreating only slowly.
“We’re going to have to let the data dictate that,” Harker said in answering questions from the audience after a speech Tuesday at La Salle University. “It’s going to be above 5% in the Fed funds rate. How much above 5? It’s going to depend a lot on what we’re seeing.”