Fed may be at point to 'hold rates steady,' Harker says
By Dan Burns
(Reuters) -Barring any abrupt change in the direction of recent economic data, the U.S. Federal Reserve may be at the stage where it can leave interest rates where they are, Philadelphia Fed President Patrick Harker said on Tuesday.
“Absent any alarming new data between now and mid-September, I believe 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,” Harker said in remarks prepared for delivery at an event in Philadelphia.
Should it be appropriate to cease raising rates, Harker continued, «we will need to be there for a while. The pandemic taught us to never say never, but I do not foresee any likely circumstance for an immediate easing of the policy rate.»
Harker has a vote this year on the rate-setting Federal Open Market Committee and supported last month's rate increase. His remarks are perhaps the strongest yet from a policy-voting Fed official to indicate an inclination against raising interest rates at the central bank's Sept. 19-20 meeting.
Atlanta Fed President Raphael Bostic, who does not have a vote on policy this year, has said he believes no more increases are necessary.
Some Fed officials are still leaning the other way, however. Fed Governor Michelle Bowman on Monday said the combination of still-elevated inflation and continued economic growth meant further rate increases are likely.
At the same time, New York Fed President John Williams, who acts as the FOMC's vice chair and has a permanent vote on the committee, said in a New York Times interview published on Monday, «I think we're pretty close to what a peak rate would be,» although he stopped short of committing to a position on the issue.
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