Inflation Will Move to Nearly 3 Percent By 2024: Philadelphia Fed President

Inflation is only expected to come down in 2025, according to a Fed chief.

Patrick Harker, President and CEO of the Federal Reserve Bank of Philadelphia, addresses an audience at the Philadelphia Fed in 2017. Courtesy of the Federal Reserve Bank of Philadelphia

Philadelphia Federal Reserve Bank President Patrick Harker said that inflation will move towards 3 percent next year and expects to see interest rates remain “steady” for the remainder of 2023.

In July 2023, the 12-month consumer price index (CPI), a measure of annual inflation, was 3.2 percent, down from 8.5 percent a year back, and 5.4 percent two years ago. In an interview with CNBC on Thursday, Mr. Harker said that inflation will be “at or slightly near 3 percent” in 2024, with the rate “moving slowly to 2 [percent] in 2025.”