Patrick Harker noted that while monetary policy remains restrictive, it is less severe than five months ago; projection is that inflation could reach the target of 2% in the next two years
Philadelphia’s president, Patrick Harker, expressed optimism regarding the reduction of the long -term basic interest rate. In a conference -prepared speech, he stated that inflation is on a fall path, although he pointed out that the economic scenario still has “many uncertainties.” Harker noted that while monetary policy remains restrictive, it is less severe than five months ago. “We will continue to depend on data, seeking underlying conditions and making decisions based on our best assessment of perspectives and risks.”
He also projected that inflation could reach the 2% target over the next two years, although it recognizes that this goal has not yet been achieved. Harker’s analysis suggests that the Fed is committed to monitoring the economic situation to adjust their policies as needed. In addition, Harker commented on the state of the labor market, which, he said, returned “widely” to balance. The unemployment rate remains low, and US GDP growth remains at a rate similar to that of 2024, which indicates greater resilience of the American economy than some previous predictions had suggested.
*Report produced with the aid of AI
Published by Matheus Oliveira
