Outlook for Economic and Banking Conditions

Philadelphia Fed President and CEO Patrick Harker told an audience at a Risk Management Association event in Philadelphia that he will “closely watch the data before making any decisions on moving the policy rate in either direction.” He said that “impacts from lingering uncertainties,” including labor strikes, resuming student loan payments, and international events “each come with their own set of economic effects.” Since the banking sector in the Third District weathered the spring banking turmoil, he noted that “Customers can have faith in their deposits and in their financial institutions.” As for the outlook, Harker said, “This is a time where doing nothing is doing something, and, in fact, I’d argue that it equates to doing quite a lot.”