Fed’s Harker: The low income consumer is clearly slowing down

  • We are seeing an uptick in labor productivity
  • The low income consumer is clearly slowing down
  • Consumer credit card delinquencies are starting to tick up
  • Repeats that they probably have done enough on interest rates, wants to see where demand settles out
  • Student loans won’t have a big economic effect but it will be a psychological effect
  • I want to see softening in the labor market, notably in the services sector
  • At this point, I see the Fed holding steady this year while next year is data driven
  • Need to see inflation falling before would be willing to cut rates.

Earlier this month, Harker made waves when he said he believes we may be at the point where we can hold rates steady, barring any ‘alarming’ data.

This article was written by Adam Button at www.forexlive.com. Source