Has FED Ended Interest Rate Increases, Will It Cut Interest Rates? FED Member Harker Answered!

While Bitcoin continues its horizontal movements at $ 26,800 today after the declines it experienced this week. Fed member Patrick Parker, who is also president of the Philadelphia Fed He talked about inflation, interest rates and the FED’s attitude.

Stating that the FED should continue its tight monetary policy for a while, Harker said that he thinks the FED may stop increasing interest rates.

In his speech at the Delaware State Chamber of Commerce, Harker stated that there is still uncertainty about how long interest rates should remain high and that he supports the view that interest rates should be kept higher for a long time.

The highlights of Harker’s speech are as follows:

“I support the stance of keeping interest rates higher for longer.

We continue to be data driven on interest rates and are patient and cautious with the data.

While I support this view, I expect a steady decline in inflation this year.

However
Unless there is a sharp turn in the data, the Fed can keep interest rates at their current level.

I can’t say here how long interest rates should stay high.

At this point, the FED will not be affected by one-month data. We look for continuity in the data. The FED’s main criterion for interest rates is the personal consumption expenditures price index. This index showed its smallest monthly increase since 2020 in August. We will not tolerate another acceleration in prices

It will take some time for the full impact of higher interest rates to be felt.

Keeping interest rates steady will allow monetary policy to do its job.

Since monetary policy is now restrictive, we will steadily keep inflation under pressure and bring markets into better balance.

Even though we’re doing nothing, we’re still doing something. And we actually do quite a lot.”