Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday that they will probably start lowering the policy rate sometime next year.

Harker argued that they don't want to overdo it with policy tightening and reiterated that he thinks there is a path to an "economic soft landing." Commenting on the labor market, Harker said the unemployment rate may tick up a little but not a lot.

Market reaction

The US Dollar Index retreated slightly from daily highs following the comments. As of writing, the index was still up 0.5% on the day at 102.54.