<ul><li>Fed not likely to cut this year but may be able to in 2024 if inflation starts ebbing</li><li>25 bps hikes allow the Fed to manage risk</li><li>Fed needs to hike to at least 5% and stay there for some time</li><li>It will take a couple years to get inflation back to 2%</li><li>Expects US jobless rate to peak at 4.5% before ebbing</li><li>Expected rise in unemployment would not be recessionary</li></ul><p>This is dovish stuff from Harker but a few more strong data points could change his tune. For now, this is the clearest dismissal of the jobs report to date.</p>

This article was written by Adam Button at www.forexlive.com.