The sizes of Sept rate hike to be decided on upcoming data, Fed officials say

Last Updated: June 2, 2023

Ahead of Fed Chairman Jay Powell’s keynote speech in Jackson Hole on Friday, two Fed officials said more rate hikes are still warranted, but they said it’s too early to decide on the size rate increase yet.

Kansas City Federal Reserve President Esther George thought that 50 bps make sense at this moment, unless some information changes her mind. However, she added:

“It’s too soon to say, you know, what should we expect in September because we have some important data that’s coming up,”

Patrick Harker, president of Federal Reserve Bank of Philadelphia, echoed this sentiment in an interview (WSJ)

“I want to see the next reading and then decide.”

Harker added that he think the neutral rate level is around 3.4%