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6/22, 3:24 PM (Source: TeleTrader)
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Harker says Fed needs to reach 2.5% quickly

President of the Federal Reserve Bank of Philadelphia, Patrick Harker, insisted on Wednesday the central bank needs to get to a 2.5% interest rate quickly to reach a neutral stance, which could happen if the Federal Open Market Committee decides on another 75 basis point (bps) hike at July meeting.

The Fed's rate should be above 3% by the end of 2022, Harker said in an interview with Yahoo Finance, adding that he hasn't decided on whether he would vote for a 50 bps or a 75 bps rate hike on July 27. "If demand softens, 50 bps for July may be good," he noted.

Harker estimated the United States economy is starting to see signs of softening demand and that it could face a couple of negative GDP quarters. Meanwhile, crude prices plunged more than 6% amid record inflation in the US and Europe.

Baha Breaking News (BBN) / ND