Fed's Harker: 50 bps hike in September would still be a substantial move

Philadelphia Fed President Patrick Harker noted on Thursday that he wants to see the next inflation reading before deciding on the September rate decision but added that a 50 basis points rate hike would still be a substantial move, per Reuters.

Additional takeaways

"We need to get to a restrictive stance, which we'll be by year-end."

"I'd like to see us get to above 3.4% and then perhaps sit for a while."

"But if data keeps indicating we need to raise more, we should do that."

"We need to get inflation under control no matter what."

"I don't think we can call the current environment a recession."

"Supply chain constraints are starting to heal."

Market reaction

The US Dollar Index edged slightly lower on these remarks and was last seen losing 0.07% on a daily basis.