Fed's Harker: I believe we may be at the point where we can hold rates steady

<ul><li>Barring 'alarming' new data by mid-Sept, I believe we may be at the where we can be patient and hold rates steady.</li><li>Should we be arrive at the point of holding rates steady, 'we will need to be there for awhile'</li><li>Does not foresee any consequeences for an immediate easing of the policy rate</li><li>Latest PCE report showed continued disinflation</li><li>Sees core PCE falling just below 4% by year end and below 3% in 2024 and at target in 2025</li><li>Expects unemployment to 'tick up slightly'</li><li>Expects only a modest slowdown</li><li>I do see us on the flight path to a soft landing we've all been hoping for</li><li>Focused on the Oct 1 resumption of Federal student loan repayments</li></ul><p>Key line:</p><blockquote>“Absent any alarming new data between now and mid-September, we may be at the point where we can be patient and hold rates steady and let the monetary policy actions we have taken do their work.”</blockquote><p>This is a big comment from a centrist at the Fed and possibly a preview of what Powell will say at Jackson Hole.</p><p>We also hear from Barkin at the bottom of the hour.</p>

This article was written by Adam Button at www.forexlive.com.