The timing and number of rate cuts the Federal Reserve makes this year will be determined by incoming data, Federal Reserve Bank of Philadelphia President Patrick Harker said Monday.
"My commitment is to remain data dependent because this is how we get through the uncertainty and make sure inflation returns to target, sustainably," Harker said according to prepared text of a speech he was to deliver to the Global Interdependence Center's annual monetary and trade conference.
The current rate — a range between 5.25% and 5.50% — "will continue to serve us well for a bit longer, holding us in restrictive territory to bring inflation back to target and mitigate upside risks," he added.
In the coming months, Harker said, he will monitor inflation, labor and economic data to determine when the right time is for a rate cut. If his projections are accurate, "I think one rate cut would be appropriate by year's end," Harker said, acknowledging that no cuts or two this year remain "quite possible if the data break one way or another."
