Feds Harker:The Fed is making progress on its inflation fight

<p>Harker says that the Fed is making progress on inflation. Earlier this week, Harker said that he thought it might be time that the Fed can hold rates steady. </p><p>Other thoughts from earlier this year:</p><ul><li>Rate Cuts: Harker anticipates that rate cuts might begin sometime next year.</li><li>Current Stance on Rates: He believes that the Federal Reserve might be at a juncture where they can maintain the current interest rates without changes.</li><li>Data Dependency: Unless there's any 'alarming' new data by mid-September, the stance would be to be patient and keep rates steady.</li><li>Duration of Steady Rates: If the decision is to hold rates steady, this position will likely be maintained for an extended period.</li><li>Policy Easing: Harker doesn't anticipate any immediate consequences from easing the policy rate.</li><li>Inflation: The latest PCE report indicated ongoing disinflation. He predicts the core PCE to drop slightly below 4% by the end of the year, below 3% in 2024, and reach the target in 2025.</li><li>Unemployment: He expects a minor increase in unemployment rates.</li><li>Economic Outlook: Harker foresees only a modest economic slowdown and believes the economy is on track for a 'soft landing' that many hope for.</li><li>Other Concerns: He is closely monitoring the resumption of Federal student loan repayments starting October 1.</li><li>Key Takeaway: "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.”</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.