Philadelphia Fed's Harker: Labor Market Concerns Outweigh Inflation Risks

Philadelphia Federal Reserve President Patrick Harker said on December 12 that her primary focus remains on labor market conditions and that current monetary policy should help bring inflation back to the 2% target, BlockBeats reports citing Jin10. She noted her concern about potential labor market weakness slightly exceeds her concern over upside inflation risks, adding that inflation is likely to ease gradually as tariff effects fade next year. Harker described the labor market as "bending but not yet breaking" and said the 75 basis points of rate cuts already implemented provide insurance against further employment deterioration.