Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday that it was time for future Fed rate hikes to shift to 25 basis points increments, as reported by Reuters.

Additional takeaways

"Fed is likely to raise rates a few more times in 2023."

"Not seeing a recession but GDP should slow to 1% this year."

"Time of super-sized rate hikes has passed."

"Once hikes end, Fed will need to hold steady for a bit."

"Core inflation is likely to moderate to 3.5% in 2023, hit Fed 2% target in 2025."

"Worst of inflation surge is now likely over."

"Labor market remains in excellent shape."

"Unemployment to fall back to 4% after rising this year."

"Unemployment likely to tick up to 4.5% this year from current 3.5%."

"Concerned about commercial real estate."

Market reaction

The US Dollar stays under constant selling pressure following these remarks and the US Dollar Index was last seen losing 0.6% on the day at 102.66.