Barkin, president of the Richmond Fed
Richmond Fed Barkin speaks and says:
- the interest rate path charted this week by the US central bank is a balance between fighting inflation and uncertainty around the post-pandemic economy
- The Fed could move faster with half-percentage-point rate hikes if inflation expectations become anchored, but so far it doesn’t seem to be the case
- the trajectory charted by the Fed this week should not lead to an economic decline, but represents a return to more normal conditions
- Inflation and employment in the United States are still strongly influenced by the effects of the pandemic. It will take time to understand the post-pandemic economy
His views are less extreme/hawkish than Waller’s thoughts this morning, although he’s open at 50bps (but not there yet).
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