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Fed's Harker stated that after three consecutive rate cuts in recent meetings, there is no need to adjust rates in the coming months. Harker opposes recent rate cuts because she is more concerned about persistently high inflation rather than potential labor market vulnerabilities. Harker is not a voting member of the rate-setting committee this year but will become a voting member next year. "My basic expectation is that rates can be maintained at the current level for some time, at least until spring. Until we get clearer evidence showing that either inflation is falling back to target levels or the labor market is experiencing more substantial weakness," she said in an interview with The Wall Street Journal's Take On the Week podcast on Thursday.

According to Odaily, Federal Reserve's Harker stated that the positive inflation data in November may be due to data collection distortions caused by the government shutdown in October and the first half of November, which underestimated the 12-month price growth. While the Bureau of Labor Statistics reported a 2.7% year-on-year increase in November CPI, the adjusted estimate, accounting for data measurement difficulties, brings it closer to the generally expected level of 2.9% or 3.0%. In addition, Harker's core concern regarding rate cuts lies in her view that the neutral interest rate level is higher than commonly believed, and that the economy itself is poised to maintain robust growth momentum next year. The neutral interest rate cannot be directly observed, but can be inferred from the state of the economy. (Golden Ten Data)

BlockBeats News, December 21st, the Federal Reserve's Harker stated that the November inflation data was positive, possibly due to data collection distortions caused by the government shutdown in October and the first half of November, underestimating the price growth over the 12 months. Although the Labor Department reported a 2.7% year-on-year increase in the CPI in November, estimates adjusted for the difficulties in measuring the data brought it closer to the 2.9% or 3.0% level widely expected by forecasters. Furthermore, Harker's concern about cutting interest rates lies in her view that the neutral interest rate level is higher than commonly believed and that the economy itself has the momentum to maintain robust growth next year. The neutral interest rate cannot be directly observed but can be inferred from the state of the economy. (Krypton Capital)