Fed's Harker: Fed still on rate-cut path, future moves driven by data

Eren Sengezer FXStreet

Philadelphia Federal Reserve President Patrick Harker said on Thursday that the US central bank is still expected to continue to cut rates but explained that the path will depend on data, per Reuters.

Key takeaways

"Underpinnings of economy strong amid high uncertainty."

"Fed must be data-dependent amid high uncertainty."

"Labor markets stabilized, are in better balance."

"Job creation pace has normalized."

"It is taking longer to get back to 2% inflation than expected."

"Fed has had success getting inflation down from peak."

"More of overall consumer spending resting on higher incomes."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen posting small daily gains at 109.07.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD clings to daily gains above 1.1800

EUR/USD keeps the fresh bid bias around the 1.1800 region as the NA session draws to a close on Tuesday. The pair’s decent bounce comes on the back of fresh downside pressure on the US Dollar as investors continue to fade the so-called “Warsh trade”. Next of note on the euro docket will be the preliminary inflation data in the euro zone on Wednesday.

GBP/USD consolidates gains below 1.3700

GBP/USD is trying to claw back some of the ground lost over the past couple of sessions, posting decent gains around the 1.3670 region on Tuesday. Cable’s bounce comes as the Greenback eases modestly, while attention now turns to the BoE’s event on Thursday.

Gold nears $5,000 on lingering political woes

Gold staged a strong rebound on Tuesday, snapping a three-day slide and turning its attention back to the key $5,000 mark per troy ounce. The move appears to be driven by bargain-hunting, helped along by renewed selling pressure on the US Dollar and a mixed tone in US Treasury yields.

Crypto winter began in January 2025, but end is near: Bitwise

The crypto market has been in a "full-blown" winter season since January 2025, following a 39% and 53% drop in Bitcoin (BTC) and Ethereum (ETH) prices from their all-time highs over the past few months, according to Bitwise Chief Investment Officer Matt Hougan.

Japan’s snap elections: The fiscal credibility test and the market playbook

Japan has opted for a snap election on 8 February 2026 rather than waiting for the normal electoral calendar, which makes this a faster, higher-stakes reset of political mandate.

Ripple slides as low retail, institutional demand weigh

Ripple edges lower, trading marginally below $1.60 at the time of writing on Tuesday as bulls and bears battle for control. The cross-border remittance token rose to $1.66 on Monday, but profit-taking and risk-off sentiment in the broader crypto market led to the ongoing correction.