Fed's Harker says small rate hikes on table, opens door to cuts next year

 NEW YORK (Reuters) - Philadelphia Federal Reserve President Patrick Harker said on Friday the surprisingly strong jobs data reported last week did not alter his view that moving to smaller interest rate rises was a good strategy for the U.S. central bank, as he flagged the prospect of rate cuts in 2024 should inflation continue to ease.

"What is driving our rate increases right now is inflation, and we are starting to see signs, early signs that inflation is starting to move down," Harker said in a Reuters interview.

"At this point, we can go at a pace of 25 (basis-point rate hikes) and get inflation under control without doing undue damage to the labor market," he said, adding that moving to smaller rate increases is a "risk management" issue for the Fed.