Harker at the FRS expects a slowdown of rate rises in the coming months

Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said that his expectation for officials is to slow the pace of interest rate rises. This expectation is based on monetary policy getting closer to a rather restrictive level.

The United States Central Bank raised its benchmark interest rates for the fourth time in a row on November 2. This time the increase was 75 basis points. In March, the target range was nearly zero, and this move raised it to 3.75-4% in order to fight against the highest inflation rate in 40 years.

The current tightening cycle is the most aggressive one since the 1980s. This has led several FRS officials to suggest that the moment for a slowdown in rate increases is nearby. However, they do not believe this will be a signal to stop rate raising.

Last month, consumer inflation was much lower than expected. FRS officials are scheduled to meet on December 13-14, and investors believe that the rate may be raised by half a percent.

At the same time, the hot U.S. labor market has not yet been affected by a rate increase. New jobs rose by 261,000 in October and unemployment remains at a low 3.7%, which is a good support for spending and consumer confidence.