Philadelphia Fed President Patrick Harker: It is important that we start lowering interest rates, but we do not have to do it very quickly

Philadelphia Fed President Patrick Harker stated on Wednesday that while he remains opposed to further interest rate hikes by the Fed, he signaled an openness to lowering short-term borrowing costs, though not in the immediate future.

Speaking on a Philadelphia-based radio program, Harker said, "I am of the view that we hold rates where they are for a while, let this play out, we don't need to raise rates anymore." However, looking ahead, he added, "It is important that we start lowering rates," noting that "we don't have to do it very quickly, we are not going to do it right away, it will take some time."

Harker's comments were his first since the Fed decided last week to keep its benchmark overnight interest rate in the 5.25-5.50 percent range.

In his interview, Harker said that a "soft landing"—where a recession is avoided, inflation returns to 2 percent, and the labor market is not severely damaged—is quite possible. He added that he expects unemployment to rise moderately, but that companies are having better luck finding workers. Harker stated that one reason for lowering interest rates is to help businesses struggling with expensive borrowing costs.