Philadelphia Fed Chairman Patrick Harker said on Monday that the Federal Reserve should not consider further interest rate hikes as many small businesses in the United States have been struggling to cope with the Fed's tightening policies so far.
Huck said, "It's really difficult for small businesses to get funding. Some of the bankers I've talked to are worried that their business plans won't be achievable at higher interest rates. I heard many such warnings during the summer." "That's why we should keep interest rates stable, and we shouldn't consider any interest rate hikes at this time
Since the beginning of last year, the Federal Reserve has raised the federal funds rate by more than 5 percentage points, and policymakers hinted in September that they may raise rates again in 2023. In recent months, Huck has been one of the largest doves of the Federal Reserve, arguing that policymakers have raised interest rates to levels sufficient to curb inflation.
In addition, Huck also stated on Monday that the current interest rate level has almost stifled opportunities for those who hope to enter the real estate market for the first time. He stated at the annual meeting of the Mortgage Bankers Association (MBA) that based on his local interactions, the housing market climate can be summarized in seven words, which means "there are no first-time homebuyers".
Huck explained that high interest rates have pushed up costs and reduced inventory, thereby hitting the real estate industry as many people no longer want to sell their homes and prompting more potential buyers to buy new ones.
Huck also reiterated the statement he made last Friday: "If what I see from the data, hear from contacts, and hear from audiences like you hasn't changed significantly, I believe we are at a stage where we can maintain interest rates at the current level." He emphasized again that since last year, the Federal Reserve has increased interest rates by over 500 basis points and reduced its balance sheet, A lot of work has been done to combat inflation.