Fed Harker reiterates preference to keep interest rates steady

Fed Harker reiterated his view that policymakers should keep interest rates on hold because aggressive rate hikes are taking a toll on the economy. Harker said in his speech: "There is always a lag in monetary policy, and keeping interest rates stable will give these lagging factors time to catch up. Stabilizing the base interest rate within the range of 5.25%-5.5% will enable us to do more in the future and make more prudent and informed decisions. I must add that these decisions could have two outcomes, depending on the data." Harker also said he sees a "slow but steady slowdown in inflation" and expects inflation to fall below 3% in 2024 and reach the 2% target thereafter. The Fed will keep interest rates higher for longer. (Golden Ten)