Two Fed officials support pause on rate hikes

Philadelphia Fed President Patrick Harker and Fed Chairman Philip Jefferson said the central bank is leaning toward not raising rates at its June meeting. Federal Reserve Chairman Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker suggested Wednesday that the central bank could hold off on raising rates at its next policy meeting. Jefferson, President Biden’s nominee for Fed Vice Chairman, said such a decision would not mean the Fed would stop raising rates. “A decision to hold our policy rate steady at an upcoming meeting should not mean that we have reached the highest rate of this cycle. Skipping an increase at an upcoming meeting would allow the committee to see more data before deciding on the extent of additional policy tightening,” Jefferson said at a conference in Washington. Philadelphia Fed President Patrick Harker said Wednesday that the central bank is leaning toward not raising rates at its June meeting. Harker added that he could change his mind after Friday’s jobs report. “I’m going into this meeting thinking we should skip the hike. However, U.S. labor market data on Friday could change my mind,” Harker said. “A pause says you’re going to hang in there for a while,” he said, emphasizing that he supports skipping a meeting rather than pausing hikes for an extended period.