Fed's Barkin: If the driver of higher rates is "as it seems to be" vaccine and economic optimism then "it's a natural reaction"

Comments from the Richmond Fed President

• There will be price pressure in the spring, given pent-up demand and excess savings
• We will be watching to see what service-sector jobs come back and if they don't, if those people can be redeployed
• I watch carefully survey based and market-based inflation expectations but those are still short of where they should be
• At the longer end of the curve, it depends a lot of the driver. If they driver is elevated
• If the driver of higher rates is "as it seems to be" vaccine and economic optimism then "it's a natural reaction"