Fed's Harker: If demand softens, 50 bps for July may be good

• We need to get to 2.50% and quickly
• 75 bps helps us to get to neutral stance
• We should be above 3% by the end of the year
• No ready to decide on 50/75 for July 27 meeting
• If demand softens, 50 bps for July may be good
• We're starting to see signs of softening demand
• Could have a couple of negative GDP quarters
• Balance sheet shrinkage is essentially on autopilot
• If we need to decelerate or accelerate economy, we will do that via Fed funds rate

The Fed is at 1.50-1.75% so getting to 2.50% might only be one meeting away. The market continues to price in a terminal top near 3.75%.

Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is a big concern but today's 7% drop in oil prices is certainly helpful for the Fed.