Fed's Harker: Jobless rate will not peak above 5%

Joshua Gibson FXStreet

Federal Reserve (Fed) Bank of Philadelphia Patrick Harker hit newswires on Friday, noting that Fed moves on interest rates need to be "methodical", telegraphing that policymakers are targeting a series of cuts through the rest of 2024 as the US central bank gears up for a dovish pivot.

Key highlights

We need to start moving rates down.

The Fed should start the process of cuts, and keep moving.

I don't see large outsize risk of labor deterioration. In our view, the jobless rate will not peak above 5%.

Contacts urging the Fed not to stop and start rate cuts.

The neutral rate is somewhere around 3%.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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