Lates News

Cleveland Fed President Harker stated that current inflation has not yet returned to target levels and the Federal Reserve may need to implement multiple rate hikes. She mentioned that a 25 basis point increase "will not have a significant impact on the economy," but she is reluctant to predict the specific number of rate hikes or the final interest rate level. Harker believes the current interest rate range of 3.50%-3.75% has not imposed a noticeable restriction on the economy, and businesses have not reduced growth investments due to high interest rates, so "now is the time to take action." She noted that the longer they wait, the more difficult it will be to bring inflation back to 2%. Harker also emphasized that there are currently no significant issues in the labor market, and the July employment data will not change her focus on inflation. She believes the market can only assist the Fed and cannot replace its actions. Harker opposed maintaining interest rates during the Fed's July policy meeting and prefers to raise rates by 25 basis points.