Fed’s Harker: We may be near the point of cutting rates but unsure of when it will happen

  • Recent CPI data shows uneven progress
  • Greatest risk is that Fed cuts too early
  • Is concerned by rising credit delinquencies
  • There are multiple signs labor market coming into better balance
  • US GDP continues to be strong
  • Still wants more confidence that inflation is moving back to 2%
  • The Fed is in the last mile of heading down to 2%
  • Rise in layoffs not a sign of recession arriving

These aren’t hawkish comments and fit in with the bulk of commentary we’ve heard since the CPI report. I wouldn’t expect an FX market reaction.

Harker isn’t a voter this year but he’s usually a good barometer of the core of the FOMC.

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