Fed's Harker: Could call for more rate hikes if inflation retreat stalled

Eren Sengezer FXStreet

Federal Reserve Bank of Philadelphia President Patrick Harker told Bloomberg on Friday that he doesn't see the need now for additional rate increases but added that he could call for more hikes if inflation retreat stalled.

Additional takeaways

"Should hold rates steady and see how policy affects the economy."

"Labor markets are cooling."

"Doubt rate cuts will be on the table until some point next year."

"We have to get inflation back to 2%."

"Shouldn't change course on balance sheet rundown at this point."

Market reaction

The US Dollar Index retreated slightly from the multi-month highs after these comments and was last seen rising 0.32% on the day at 104.32.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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