• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Philadelphia Fed President Patrick Harker advocates for interest rate cut in September

by August 23, 2024
written by August 23, 2024

Philadelphia Federal Reserve President Patrick Harker on Thursday provided a strong endorsement to an interest rate cut on the way September.

Speaking to CNBC from the Fed’s annual retreat in Jackson Hole, Wyoming, Harker gave the most direct statement yet from a central bank official that monetary policy easing is almost a certainty when officials meeting again in less than a month.

The position comes a day after minutes from the last Fed policy meeting gave a solid indication of a cut ahead, as officials gain more confidence in where inflation is headed and look to head off any potential weakness in the labor market.

“I think it means this September we need to start a process of moving rates down,” Harker told CNBC’s Steve Liesman during a “Squawk on the Street” interview. Harker said the Fed should ease “methodically and signal well in advance.”

With markets pricing in a 100% certainty of a quarter percentage point, or 25 basis point, cut, and about a 1-in-4 chance of a 50 basis point reduction, Harker said it’s still a toss-up in his mind.

“Right now, I’m not in the camp of 25 or 50. I need to see a couple more weeks of data,” he said.

The Fed has held its benchmark overnight borrowing rate in a range between 5.25%-5.5% since July 2023 as it tackles a lingering inflation problem. Markets briefly rebelled after the July Fed meeting when officials signaled they still had not seen enough evidence to start bringing down rates.

However, since then policymakers have acknowledged that it soon will be appropriate to ease. Harker said policy will be made independently of political concerns as the presidential election looms in the background.

“I am very proud of being at the Fed, where we are proud technocrats,” he said. “That’s our job. Our job is to look at the data and respond appropriately. When I look at the data as a proud technocrat, it’s time to start bringing rates down.”

Harker does not get a vote this year on the rate-setting Federal Open Market Committee but still has input at meetings. Another nonvoter, Kansas City Fed President Jeffrey Schmid, also spoke to CNBC on Thursday, offering a less direct take on the future of policy. Still, he leaned toward a cut ahead.

Schmid noted the rising unemployment rate as a factor in where things are going. A severe supply-demand mismatch in the labor market had helped fuel the run in inflation, pushing wages up and driving inflation expectations. In recent months, though, jobs indicators have cooled and the unemployment rate has climbed slowly but steadily.

“Having the labor market cool some is helping, but there’s work to do,” Schmid said. “I really do believe you’ve got to start looking at it a little bit harder relative to where this 3.5% [unemployment] number was and where it is today in the low 4s.”

However, Schmid said he believes banks have held up well under the high-rate environment and said he does not believe monetary policy is “over-restrictive.”

Harker next votes in 2026, while Schmid will get a vote next year.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Peloton to start charging subscribers with used equipment $95 activation fee
next post
White House lawyers who advised Reagan, Bush endorse Harris over Trump in 2024 showdown

related articles

Nike pushes back Skims launch with Kim Kardashian...

June 19, 2025

DOJ seizes record $225 million in crypto tied...

June 19, 2025

Amazon expects to cut corporate jobs as it...

June 18, 2025

Streaming overtakes cable and broadcast as the most-watched...

June 18, 2025

Kraft Heinz to remove artificial dyes from U.S....

June 17, 2025

Trump-branded wireless service launches — with a gold...

June 17, 2025

Meta is finally bringing ads to WhatsApp

June 17, 2025

Starbucks moves to the next phase in its...

June 17, 2025

Trump made millions on guitars, Bibles and watches...

June 16, 2025

Anne Wojcicki to buy back 23andMe and its...

June 16, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Judge blocks Trump order limiting ‘indirect’ NIH research costs after public outcry

    February 11, 2025
  • Some local Teamsters groups announce Harris endorsements after national union declines to do so

    September 21, 2024
  • Dow and S&P 500 rise on Trump’s softer tariff stance; FuboTV soars 170%, auto stocks climb

    January 6, 2025
  • White House monitoring reports of North Korean soldiers deployed to Russia: ‘Highly concerning’

    October 21, 2024
  • Ivanka Trump’s inauguration gown gives nod to Audrey Hepburn as star’s son shares ties between famous families

    January 23, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (5,005)
  • Investing (634)
  • Stock (809)

Latest Posts

  • Trump picks Warren Stephens to serve as US ambassador to UK

    December 3, 2024
  • Less than half of DOGE-terminated contracts can be publicly tracked, only about a quarter of grants: watchdog

    May 29, 2025
  • Investors pitch new international basketball league that would offer players equity

    January 17, 2025

Recent Posts

  • Walmart is opening five automated distribution centers as it tries to keep its grocery dominance

    July 11, 2024
  • Ukraine, North Korean troops clash for first time; Zelenskyy warns of escalation

    November 6, 2024
  • Hezbollah launches rockets at Israel after overnight airstrikes: ‘Open-ended battle’

    September 23, 2024

Editor’s Pick

  • EURUSD and GBPUSD: GBPUSD remains stable in a bullish trend

    August 23, 2024
  • UPS shares tank 15% after weak guidance, plan to slash Amazon deliveries by more than half

    January 31, 2025
  • AG Bondi says violent anti-Israel student protesters in US on visas ‘need to be kicked out’

    February 21, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock