Federal Reserve's Harker: The Fed does not need to raise interest rates to combat inflationary pressures

Jinse Finance reported that Federal Reserve's Harker stated she does not believe the Fed needs to raise interest rates to combat what she considers excessively high inflationary pressures, but she acknowledged that this view could change. Although inflation remains high, raising rates "is not her current baseline expectation." The Federal Reserve needs to maintain a moderately tight monetary policy to bring down inflation amid a weakening job market. She outlined factors that could change her view on interest rate policy. She said: "If we see the labor market is healthier than I perceive, if employment data does not indicate the economy is cooling but rather reflects changes in immigration flows, that could alter my perspective. If inflation continues to remain at such a high level instead of declining, then it may mean we need to raise rates in that situation."