Philadelphia Fed President Patrick Harker stated that officials are expected to lower interest rates this year, but the specific timing will depend on economic conditions. Harker mentioned that returning inflation to the Federal Reserve's 2% target will take longer than anticipated and progress is uneven. However, he noted that the economy is generally strong and the labor market has cooled to pre-pandemic levels. "I still believe we are on a path to lower policy rates. In light of the current situation, I will not steer away from this path or turn back," Harker said in remarks prepared for an event in Princeton, New Jersey on Thursday. "But the exact speed at which I continue along this path will depend entirely on future data." In December, Fed officials cut rates by 25 basis points, lowering the benchmark rate by a full percentage point since September. Fed Chair Jerome Powell and other officials indicated that the Fed has room to be more cautious in rate cuts after data showed a strong labor market and ongoing inflation. Harker echoed this sentiment, emphasizing that the Fed should continue to rely on data rather than act "hastily."