Fed Harker Downgrades Rate Decline and Pleads for Ownership by Investing.com

Investing.com -, chairman of the US Federal Reserve in Philadelphia and a non-voting FOMC member, joined the Falcon camp on Thursday, saying he did not see the need for additional stimulus.

Although Mr. Harker admitted that he was "reluctantly" backing the 25 basis point cut in July, he said the Fed was "pretty much where we need to be" in a interview with CNBC.

"We are pretty much neutral," said Harker. "I think we should stay here for a while and see how things are going."

Harker argued that the Fed should do what is appropriate for the US and that the recent reversal of the yield curve, which some economists see as a sign of impending recession, is just one of many signals. other.

"Labor markets are strong, inflation is slowly rising – but with the latest CPI publication, it was a good impression," he said.

He admitted that trade uncertainty was a hindrance to the US economy and said he would be more worried if tariffs came into effect and hit the US consumer.

His remarks follow the July ruling, released Wednesday, revealed one. Esther George and Eric Rosengren both disagreed with the decision in July to cut rates for the first time in ten years, preferring not to make any changes, while the minutes showed that "two" policy makers were arguing for a larger reduction of 50 basis points. .

Markets are waiting Friday for Fed Chairman Jerome Powell to clarify the outlook for monetary policy.