[Philadelphia Fed President Harker: Focus on Employment Risks, Monetary Policy Remains Restrictive] Philadelphia Fed President Harker stated that the current primary focus is on the labor market conditions, with slightly greater concern about labor market weakness than the risk of rising inflation. Harker believes that as the impact of tariffs fades, inflation is highly likely to gradually decline next year. Harker emphasized that monetary policy remains in a restrictive state, which should help inflation return to the 2% target. Harker noted that the cumulative 75 basis points rate cuts over the past three instances have provided insurance against further deterioration in the labor market, and the situation will become clearer early next year.