Fed Harker: Can't unequivocally support 25 or 50 bps rate cut, need to start process as long as no surprises in data
Fed Harker said, now can not say support 25 basis points or 50 basis points of interest rate cuts, the need for more data, the market on the Fed's pricing of action without commenting on the direction of the Fed's actions than the magnitude of the action is more important. As long as the data performance in line with his expectations, he supported the rate cut in September. Harker said in an interview, “For me, if there are no surprises in the data we get between now and then, I think we need to start the rate-cutting process.” Harker said the size of any particular move is less important than how big the overall rate cut is, noting, “I think a slow, methodical rate cut is the right thing to do.” He said businesspeople he spoke to called for predictable action and didn't want a rate cut to resemble the aggressive rate hike that will raise rates from near zero in the spring of 2022.
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