It's Time for the Fed to Slow Rate Hikes - Fed Official Harker


 'It has been proven effective to raise rates, so maybe the Fed can take it easy for now.'

President of the Federal Reserve (Fed) Philadelphia branch, Patrick Harker expressed the view that it is time for the central bank of the United States (US) to reduce interest rate increases.

The basis was presented by Harker by citing the factor that the monetary policy of the central bank has now reached a sufficient level of tightening.

He commented that in the coming months the Fed is expected to reduce the increase in interest rates since it has reached a sufficient level of tightening, based on the latest positive data.

He added that the Fed may keep the current rate for a while to ensure that the policy tightening measures are really effective.

For the record, the Fed hiked rates by 75 basis points for the 4th time in a row on November 2 and brought the benchmark to the target range of 3.75% to 4% in an effort to curb inflation.

It was the central bank's most aggressive policy tightening campaign since 1980 and many officials voiced the opinion that it was time to ease rates.

Citing Fed official Lael Brainard's statement on Monday that it is time for the US central bank to slow rate hikes after tightening so much before.

In fact, investors are also on the same page as they expect the Fed to reduce interest rate hikes at the last meeting on December 13-14 as inflation readings decline.

In support of those fundamentals, employment data saw the addition of 261,000 new jobs in October with the unemployment rate remaining low at 3.7%, suggesting the economy is able to support consumer confidence and spending.