Fed's Harker: rate hikes should be suspended in June, wait and see first

According to the Caixin news agency , Thursday EST , Philadelphia Fed President Harker said that the Fed should leave interest rates unchanged at its June meeting , despite the fact that the inflation pullback process is "disappointingly underway" and inflation is still well above the Fed's target . 

In a webinar for the National Association for Business Economics , Harker stressed that it was time to press the button to stop raising interest rates and that it would be best to wait and see what happens to the economy first. The day before, Harker said: "I think we can skip a meeting on rate hikes a little bit, and frankly, if we're going into a period where we need to take more tightening measures, we can act once every other meeting. " 

As it stands now , has begun to see the impact of rate hikes on wages and prices , so Harker recommends holding back in June . But if Friday's nonfarm payrolls and next week's inflation data are much stronger than expected, he may change his mind. He expects inflation to fall to about 3.5 percent this year and 2.5 percent next year, and to reach the Fed's 2 percent target by 2025.