Latest news with #PatrickHarker
Yahoo
a day ago
- Business
- Yahoo
Fed's Harker says rate cuts this year still possible
-- Philadelphia Federal Reserve President Patrick Harker, who is set to retire at the end of June, has stated that interest rate cuts could be a possibility this year, given the current economic uncertainty. Harker discussed his concerns about the quality of economic data used by policymakers in a recent interview. Harker mentioned that the option to ease monetary policy is always on the table. He stated, "If the signals are such that inflation doesn't look like it's moving rapidly north, but unemployment does then, yeah, I could definitely see making one or more cuts this year, but it's hard to say at this point." In addition to his thoughts on monetary policy, Harker, who previously led the University of Delaware, expressed concerns about the reliability of the data used by policymakers. He indicated that the quality of data, including that produced by the government, is not improving. Harker stated, "It's not just inflation data but a whole host of data, so we're increasingly flying blind, or at least half blind." Harker has been leading the Philadelphia Fed since 2015 and his tenure is coming to an end this month. The Federal Reserve is scheduled to meet on June 17-18, and it is widely anticipated that the interest rate target will remain steady at between 4.25% and 4.5%. Related articles Fed's Harker says rate cuts this year still possible US job growth in May tops forecasts, but Macquarie warns cracks are emerging Carney launches 'One Canadian Economy' Act to unify trade, approvals Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 days ago
- Business
- CNBC
Tariffs still represent clear risk to the upside, says Philadelphia Fed President Patrick Harker
CNBC's Steve Liesman and Philadelphia Fed President Patrick Harker, join 'The Exchange' to discuss the what the Fed is watching and potential Fed next move.
Bloomberg
2 days ago
- Business
- Bloomberg
Harker Urges Fed to Wait For More Clarity Before Adjusting Rates
Federal Reserve Bank of Philadelphia President Patrick Harker said there's a potential path to lowering rates in the second half of the year, but repeated officials should stand pat for now and wait for uncertainty to ebb. 'For now, I am strongly of the belief we sit here, let some of this uncertainty resolve itself,' Harker said Friday during an interview with CNBC. 'I just think taking a preemptive action right now on hypotheticals, as opposed to what the hard data is telling us, is a mistake.'
Reuters
2 days ago
- Business
- Reuters
Fed's Harker says rate cuts this year still possible, amid data quality worries
June 6 (Reuters) - As he heads toward retirement at month's end, Philadelphia Federal Reserve President Patrick Harker says interest rate cuts remain a possibility this year amid a very uncertain economic landscape, as he also flagged worries about the quality of economic data policymakers use to make their decisions. When it comes to easing monetary policy, 'it's possible, I would never take it off the table,' Harker said in an interview with Reuters on Thursday. 'If the signals are such that inflation doesn't look like it's moving rapidly north, but unemployment does then, yeah, I could definitely see making one or more cuts this year, but it's hard to say at this point.' Harker was interviewed in the final weeks of his tenure, as he's set to retire at the end of June after taking the reins of the Philadelphia Fed in 2015. The Fed next meets on June 17-18 when it is universally expected to hold its interest rate target steady at between 4.25% and 4.5%. What happens later in the year is up in the air, as the Trump administration's chaotic trade policy featuring ever-changing high import taxes will likely drive up inflation and lower employment. The question facing Fed officials is whether the inflation rise is a one-off or the makings of something more enduring. Those uncertainties have blunted officials' ability to provide guidance on the monetary policy outlook and have pushed them into signaling a wait-and-see attitude. Harker, an engineer by training who led the University of Delaware before coming to the Fed, said in the interview that he was increasingly worried about the quality of the data policymakers in general rely on. Data, including that produced by the government, is 'not good. It's not getting better,' Harker said. 'It's not just inflation data but a whole host of data, so we're increasingly flying blind, or at least half blind.' Harker's worries about the state of data come in the wake of reports the government was cutting back on resources devoted to compiling the closely watched consumer price index, which provides a critical reading that informs things like the wage changes in union contracts and the setting of social security benefits.
Reuters
3 days ago
- Business
- Reuters
Fed's Harker says its time for caution on monetary policy amid uncertainty
June 5 (Reuters) - In his final speech as a central banker, Philadelphia Federal Reserve President Patrick Harker said on Thursday the economic outlook is too unsettled right now to say what's next for monetary policy. "America's economy remains resilient," Harker said in the text of a speech prepared for delivery before a gathering at his regional Fed bank. "I do not see any dangerous cracks in the foundation. But there are stressors on this foundation." Harker, who has held office since 2015 and is scheduled to retire at the end of this month, said big changes in policy in Washington make it very hard to know what's next. "We do not yet have a clear picture of the ultimate impact on inflation and employment of the changing economic policies and priorities in Washington," he said. With all the uncertainty in play, Harker said "we have to wait and see" how the economy performs before a decision can be made on changing monetary policy. "The data I am receiving - both hard data and soft data - could allow me to present multiple outlooks, and "only time can provide the necessary clarity," he noted. The Fed is expected to hold its benchmark interest rate steady in the 4.25%-4.50% range at its next policy meeting on June 17-18. Many economists as well as Fed officials believe inflation and unemployment are likely to rise and growth to slow due to President Donald Trump's import tax agenda. Most Fed officials have nodded towards the uncertainty and declined to provide much guidance on interest rate policy. Harker noted the outlook could put the Fed in a difficult spot where it has to decide what side of its job and inflation mandates it will give primacy to. "It is entirely possible that the (Federal Open Market) Committee will be facing both upward pressures on prices and rising unemployment," he said. Harker also noted that the slow retreat in inflation pressures means that even absent the trade tumult, "that in itself has been reason enough to hold steady, be deliberate in our approach, and allow monetary policy to continue to work." He also said that it's critical to defend and promote Fed independence. "It is absolutely critical that decisions on monetary policy be free of external noises and influences," Harker said.
