According to a statement made on Thursday by Philadelphia Fed President Patrick Harker, a moment is approaching when the Fed might be able to start slowing the pace of its rate hikes, initiated for inflation curbing.
As it was told by Harker, it’s possible in the following months to expect a slowdown of raising of interest rates, which is linked to a fact that a certain level of cumulative tightening is already achieved and the Fed is approaching a restrictive stance which is sufficient enough. Harker also emphasized that a shift from 75-basis-point hikes to hikes by about a half percentage point would still be a serious move.
Harker’s statement was made as other central bank representatives also voiced their suggestions. Many of them also forecasted a possibility of the slowdown to take place in the upcoming months. Lorrie Logan, newly-minted Dallas Fed leader, was one of those Fed officials as he stated his readiness to accept a change of course in the central bank’s policy.