Philadelphia Federal Reserve Bank President Patrick Harker stated on Thursday that he believes it is time for the central bank to 'hit the stop button' for at least one meeting, reiterating his comments from Wednesday about a potential pause at the next meeting. Harker argued that such a move would be prudent at this time.

Speaking about the economic outlook, Harker stated that he does not anticipate a recession this year. He would be worried in the case of a significant deterioration in the job market. He added that if inflation were to unexpectedly decrease at a rapid pace, then the central bank could potentially cut rates.

Market reaction:

The US Dollar is falling sharply on Tuesday, as Treasury bonds rally amid expectations of a no hike at the next FOMC meeting. The DXY is losing 0.60%, trading at 103.57, at the lowest in a week.