Fed's Harker: Still expects rate cuts, but may not act hastily

Philadelphia Fed President Patrick Harker said Thursday that he still expects the Fed to cut interest rates, but the policy path is shrouded in considerable uncertainty. "I still think we are on a downward path for the policy rate," Harker said. "I do not intend to deviate from that path or turn around. The exact pace of continued progress will depend entirely on newly received data." Harker has no vote this year. In his speech, he said, "The overall foundation of our economy remains strong," but even so, "we are still in a very unstable period," which limits guidance on the future policy path. Harker noted that it will take longer than expected to get inflation back to the 2% target. He also said that the labor market has stabilized and remained healthy, and he is concerned about growing signs that low-income earners are facing greater pressure. (Jinshi Data APP)