Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

Harker: The Fed should raise the rate slightly above 5% and take a break


January, 13 2023
watermark Economic news

The president of the Federal Reserve Bank of Philadelphia, Patrick Harker, said that the US Federal Reserve System needs to raise the base interest rate slightly above 5% per annum, and then pause.


In his speech, Harker noted that he and other representatives of the regulator expect repeated rate increases in 2023. At the same time, the official doubts the likelihood of an increase of 75 basis points and relies on further tightening of monetary policy in increments of 25 basis points.


In general, according to Harker, the Fed should raise the rate slightly above 5% and then take a break. The fact is that consumer price data for December already indicate a slowdown in inflation (6.5%). And since inflation is moving in the right direction, it is important for the Fed not to overdo its actions regarding monetary policy.


The head of the Philadelphia Fed also shared his forecast regarding core inflation: this year Harker expects the Core CPI index to slow down to 3.5%, and then to 2.5% in 2024. According to him, returning to the Fed's 2% target will take time. Core inflation in December 2022 (excluding the cost of food and energy) was 5.7% against 6% in November.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.