Non voting member on the FOMC in 2019

In a WSJ article, Philadelphia Fed Pres Harker is saying

  • he sees no reason for interest rate changes
  • would entertain rate cuts if you believe the economy was weakening substantially
  • slowing global growth and uncertainty over trade policyhave created clear risks to a no change outlook
  • he supported decision to hold rates steady, and projected no change to rates this year
  • The US still has a strong labor market
  • there is no need to move rates in either direction at this point in my view
  • the Fed has been surprised by a cooling of inflation this year
  • Does not see inflation as an imminent crisis, and thinks the Fed can give it some time to move back up to 2% target
  • he did not think it would be a mistake to cut rates but says the prudent path for me is to hold steady and see how the economy evolves
  • the Fed does not discuss political pressure when making interest-rate decisions

Harkers more hawkish comments are not having an impact on the markets. In fact, the Nasdaq has moved into positive territory. The S&P and Dow are still negative but the S&P is trading at session highs. The Dow lags.

In the currency market, the dollar is off high levels on the day although it remains strong vs the AUD and NZD (making new lows in the current hourly bars).