Harker: “I Still See Us on a Downward Policy Rate Path”

For immediate release

Contact: Daneil Mazone, Media Relations

Princeton, NJ - Patrick T. Harker, president and CEO of the Federal Reserve Bank of Philadelphia, today said that while economic uncertainties remain, he sees reason in recent economic data for the Federal Open Market Committee's (FOMC) effort to begin decreasing the policy interest rate to continue through 2025.

Harker gave his forecast during the New Jersey Chapter of the National Association of Corporate Directors' annual economic outlook event.

"I still see us on a downward policy rate path. Looking at everything before me now, I am not about to walk off this path or turn around. But the exact speed I continue to go along this path will be fully dependent upon the incoming data," Harker stated. "At this moment, I'm still just putting one foot in front of the other."

Harker said his position is based on current economic data, which show inflation continuing down a path to the Federal Reserve's target rate of 2 percent annually, sustained growth in Gross Domestic Product, stabilization in labor markets, and resilient consumer spending, among other data. However, he said he will closely review incoming data as economic uncertainties continue to exist.

He added that even with current data points, he recognizes that individual families and businesses may not see their own circumstances reflected.

"Our overall economy continues to be, arguably, strong and stable and indeed among the strongest and most stable in the world," said Harker. "While I can say 'our economy is strong' I know that not every American household or business may be benefitting. My goal is to help them be able to do so."