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Fed’s Harker doesn’t see need for another rate cut

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Fed’s Harker doesn’t see need for another rate cut


Patrick T. Harker, president of the Federal Reserve Bank of Philadelphia

Charles Mostoller | Bloomberg | Getty Images

Philadelphia Fed President Patrick Harker said Thursday that while he reluctantly supported the central bank’s rate cut in July, he doesn’t see the case for additional stimulus.

“We’re roughly where neutral is. It’s hard to know exactly where neutral is, but I think we’re roughly where neutral is right now. And I think we should stay here for a while and see how things play out,” Harker told CNBC’s Steve Liesman from the central bank’s annual symposium in Jackson Hole, Wyoming.

Harker, who isn’t a current FOMC voting member, said that while he offered tepid support for the central bank’s 25-basis-point cut in July, he’d prefer to wait and see before advocating for more easing. 

Asked if he sees a case for further stimulus, Harker replied “No. Not right now.”

“The labor markets are strong, inflation is moving up slowly — but with the last CPI print, it was a good print,” he said.

Following Karker’s comments, the bond market’s main yield curve inverted for the third time in less than two weeks. The yield on the 2-year Treasury was at 1.601% while the 10-year yield was below at 1.597%, causing the inversion. 

Harker was not the only central banker making bond market moving comments. Bond ticked lower after Kansas City Fed President Esther George said the July rate cut was not “necessary.” 


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