Fed's Harker: Cannot clearly support 25 or 50 basis point rate cuts, as long as there are no surprises in the data, the process needs to be started

Fed's Harker said that it is impossible to say whether to support a 25 basis point or 50 basis point rate cut now, and more data is needed. He did not comment on the market's pricing of the Fed's actions. The direction of the Fed's actions is more important than the magnitude of the actions. As long as the data performance meets his expectations, he supports a rate cut in September. "For me, if there are no surprises in the data we get between now and then, I think we need to start the process of cutting interest rates," Harker said in an interview. Harker said the size of any particular move is not as important as the overall rate cut, noting: "I think slow and methodical rate cuts are the right approach." He said that the business people he has contacted called for predictable actions and did not want the rate cuts to be the same as the aggressive rate hikes that raised interest rates from near zero in the spring of 2022. (Jinshi)