Fed’s Harker: Next Fed rate choice 'could go either way' depending on data

Dhwani Mehta FXStreet

Commenting on the US Federal Reserve (Fed) interest rate outlook, Philadelphia Fed President Patrick Harker said that the “next Fed rate choice 'could go either way' depending on the data.”

Additional quotes

Supported steady interest rate stance at latest FOMC meeting .

Now is a time to take stock of past rate hikes’ impact.

Fed will stay higher for longer, no sign of near-term rate cuts.

Labor market is moving into better balance.

Unemployment rate to rise to 4.5% in 2024 before falling.

Confident consumers will help achieve soft landing.

Unclear yet whether consumers have expended spending power.

No recession seen, but growth likely to cool off.

Inflation steadily falling, to hit 3% in 2024, 2% after.

Market reaction

The US Dollar is feeling the pull of gravity against its major rivals on the ambiguous comments from the Fed official. At the time of writing, the US Dollar Index is dropping 0.08% on the day to test session lows near 105.50.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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