Comments from Barkin in a WSJ interview:
- Asked if he would favor a 100 bps hike: “I don’t want to front-run the policy process, but it certainly makes the case even stronger to continue to be resolute to fight inflation”
- Size of hike “is not nearly as important to me as the destination, which is, where do you want to take forward-looking real rates?”
- “To have the kind of impact on inflation you want to have,” shorter-term interest rates “need to get into positive territory.”
- The types of inflation data reported Wednesday “will make that even more challenging and make our job even harder."
- Businesses “are taking more care on their investments and hiring,” he said. “How much of that is due to rates, per se, and how much of that is due to chatter about recession … is hard to know. But I definitely hear that happening.”
There's nothing particularly notable in these comments but I find it interesting that he's choosing to comment at all. Perhaps there's a directive to open up the debate about 100 bps?
Pricing has been volatile today but 100 bps now sits at 68%.
